Silver (XAG) Forecast: Rally Pushes to New Highs as Buyers Stay in Control

Silver Rips to Fresh Highs — Buyers Still in Control

Spot silver ripped higher Wednesday, tagging $66.54 before easing back to around $65.38. That pullback barely registers. More importantly, the spike wiped out last Friday’s closing price reversal top, putting the uptrend firmly back in charge. Bottom line: the market shook off a near-term warning and kept pushing.

Volatility is now part of the deal. Last Friday’s break stretched from $64.67 down to $60.80 — a $3.87 swing. That matters. Traders should assume any meaningful selloff from a fresh high needs to clear at least that kind of distance to count as real pressure. Anything less looks like noise.

At 14:24 GMT, XAGUSD is trading $65.25, up $1.50 or +2.35%. This is down from a record high of $66.54.

Speculation Meets Strong Fundamentals

The rally isn’t just technical. Silver is getting pulled higher by a mix of tight supply, solid industrial demand, and growing speculative interest. Options markets are clearly in play, with traders leaning into the upside rather than fading it. Silver’s role in green energy and electronics keeps demand expectations firm, and the supply side isn’t offering much relief.

The broader metals complex is helping too. Gold is grinding higher after softer U.S. jobs data hinted at a cooling labor market. Nonfarm payrolls rose just 64,000, while the unemployment rate climbed to 4.6%, the highest since 2021. That keeps rate-cut expectations alive, which tends to suit non-yielding metals just fine.

Silver is now up roughly 128% on the year. That kind of move attracts momentum money, but it also raises the risk of sharp profit-taking if sentiment turns. For now, though, traders aren’t rushing for the exits.

Support Levels Matter More Than Ever

With price discovery underway, resistance isn’t the issue. Support is. The nearest floor sits at the pair of swing lows at $60.80 and $56.46. Below that, the 50-day moving average at $53.10 is the line bigger players will care about. As long as buyers keep defending well above those levels, dips are likely to attract interest.

One caveat: with no overhead resistance, the cleanest warning sign would be another closing price reversal top. That would flag profit-taking rather than panic — but it would still tell traders the market needs a breather.

Short-Term Outlook: Trend Up, Nerves Elevated

The trend stays higher, no question. The market wants to push, and buyers keep stepping in. Still, after a run like this, pullbacks can be fast and uncomfortable. Chasing strength here feels risky, but fading it without a clear signal feels worse.

Near term, silver looks set to stay bid unless sellers can force a move well beyond that $3.87 volatility threshold. Until then, the path of least resistance remains up — just with sharper swings along the way.

More Information in our Economic Calendar.