Silver (XAG) Forecast: Silver Rally Builds on Renewed Demand and Gold’s Steady Bid

Silver Pops — and Traders Are Leaning Into the Move

Spot silver pushed sharply higher on Wednesday, ripping through $51.07 and flipping that minor barrier into new support. The reaction was quick — almost reflexive — which tells you traders had been waiting for a clean trigger after several sessions of tight, choppy action.

Once $51.07 gave way, buyers stepped in with confidence, and the follow-through carried silver straight toward the next minor pivot at $51.88. Clearing that level keeps the chart wide open toward the recent tops at $54.39 and $54.49.

The broader trend is still anchored by the 50-day moving average at $47.98. Silver hasn’t tested it this week, but the market keeps respecting it. As long as silver stays elevated above that gauge, dip-buyers will feel comfortable pressing their advantage.

At 13:32 GMT, XAGUSD is trading $52.08, up $1.38 or +2.72%.

Gold’s Tone and Dollar Strength Are Pulling Weight

Part of silver’s strength is coming from how gold is trading. Gold caught a solid bid off its own minor bottom at $4082.58, holding above the 50-day moving average and punching into its retracement zone. The key takeaway: gold rose even while the dollar firmed — and that matters. When metals can climb against a stronger greenback, it usually means traders want exposure, not protection.

The dollar index is hovering just below its 200-day moving average, a spot that capped rallies earlier this month. If the dollar breaks above it, metals could cool off. But for now, safe-haven interest is giving both gold and silver some support.

A run of softer U.S. jobless data, the delayed September NFP release, and the coming FOMC minutes all sit in front of traders, and positioning has already shifted slightly toward a December rate cut. Fed funds markets moved the odds to roughly the mid-40% area, showing traders aren’t convinced — but they’re open to it.

Buyers Still Running the Show — But Data Could Stir Things Up

Silver’s behavior is straightforward: traders are buying strength, not fading it. Every small dip since Tuesday has been met with interest, and the lack of pushback from sellers is noticeable. If silver starts slipping, the first floors come at $51.07, then the tight band at $50.02–$49.97, before the swing bottom at $49.36.

Outlook: Silver Still Aims Higher

As long as silver holds above $51.07, the market has room toward $54.39–$54.49. A soft U.S. data run could give buyers exactly the excuse they’re looking for. But a drop under $50 would cool the momentum fast and shift the tone back to caution.

More Information in our Economic Calendar.