Silver (XAG) Forecast: Silver Market Braces for Fed Minutes, Dollar Strength Weighs

Silver Holds Above Support While Traders Watch Fed and Tariffs

Silver prices dipped for a third straight session on Wednesday but managed to hold above the key pivot at $36.30, signaling that buyers are still defending critical levels while awaiting catalysts from the Federal Reserve and ongoing tariff escalations.

At 14:05 GMT, XAG/USD is trading $36.37, down $0.39 or -1.05%.

Treasury Yields, Fed Minutes Keep Metals Traders Cautious

Benchmark 10-year Treasury yields remain firm near 4.407%, and the 2-year yield holds at 3.903%, reinforcing pressure on non-yielding assets like silver.

Traders are recalibrating positioning while awaiting Federal Reserve meeting minutes, looking for any signal of easing.

Persistent higher yields reduce the relative appeal of precious metals, with many in the market expecting clarity from the Fed before taking new positions in silver.

Dollar Strength Paired with Tariff Risks Limits Upside

The U.S. dollar index edged higher by 0.1%, maintaining its rally driven by safe-haven demand linked to President Trump’s aggressive tariff threats on copper, semiconductors, and pharmaceuticals.

Tariff increases on 14 countries, including Japan and South Korea, effective August 1, are feeding inflation concerns while capping silver’s upside in the short term.

A firmer dollar also limits silver’s price recovery potential, especially as global demand recalculations continue under a potential stagflation environment.

Technical Levels in Focus: Can Buyers Push Toward $37.32?

Silver’s ability to stay above $36.30 suggests buyers are present, but they need a clear catalyst to challenge resistance between $37.23 and $37.32.

A decisive move above this range could open further upside potential. Conversely, a sustained drop below $36.30 may accelerate downside pressure toward $35.40 to $34.87, with major support aligning at the 50-day moving average of $34.70.

Traders will closely monitor these technical markers for positioning clarity.

Silver Outlook: Holding Support, But Pressure Remains

The immediate outlook for silver remains cautious as higher U.S. yields, a firm dollar, and tariff uncertainties constrain upside attempts while buyers defend critical support.

A break above $37.32 would indicate renewed bullish momentum, but unless the Federal Reserve signals a clear pivot toward easing, silver may continue to grind sideways with a risk of testing lower support levels if the $36.30 floor breaks.

Traders should prepare for choppy price action as external factors continue to dominate sentiment.

More Information in our Economic Calendar.