Silver (XAG) Forecast: Silver Rally Extends as Price Clears Key Resistance at $35.40

Silver Bulls Eye New Highs as Breakout Levels Hold

Silver is back in focus, charging toward multi-year highs and reinforcing bullish momentum as prices break above key technical thresholds. On Thursday, the metal decisively cleared former resistance at $34.87 and $35.40, levels that now serve as near-term ceilings, confirming strong demand and speculative interest.

At 14:05 GMT, XAGUSD is trading $35.60, up $1.10 or +3.18%.

Support Zones Reinforce Bullish Setup

The technical picture is clear: silver remains above both the 50-day moving average at $32.80 and the 200-day at $31.67. Holding above these long-term trendlines keeps the bullish structure intact and signals to traders that downside risk is limited for now. These moving averages not only provide psychological and algorithmic support but also serve as key reference points for funds adjusting exposure.

With the metal trading firmly on the strong side of these benchmarks, momentum players and CTAs are likely to stay engaged. The pattern suggests that dips toward $33 could attract buyers rather than trigger liquidation.

Broader Commodities Sentiment and Dollar Drift

While silver’s move has been driven by its own technicals, broader market conditions remain supportive. The U.S. dollar is stuck in a holding pattern, offering little headwind to metals. Meanwhile, inflation-related concerns tied to renewed U.S.-China trade tensions have helped reinforce interest in hard assets.

The recent tariff hikes on steel imports and deteriorating trade rhetoric between Washington and Beijing have added fuel to the safe-haven narrative, albeit more for gold. Still, spillover sentiment has aided silver, especially given its dual role as both an industrial and investment metal.

Traders Watch Fed and Payrolls for Next Trigger

Attention now shifts to U.S. economic data, with Friday’s nonfarm payrollsin focus. A stronger-than-expected print could delay the timing of rate cuts, which might support the dollar and cool some speculative interest in silver. Conversely, a soft report would favor precious metals as traders reprice dovish Fed expectations.

For silver, the risk is asymmetric. A weak labor number could rapidly push prices beyond $36, while only a sharp upside surprise in jobs data is likely to unwind the current bid.

Silver Outlook: Bullish Bias with Tight Stops

Silver remains in a technically bullish zone with upside potential if resistance near $35.40 gives way. As long as prices remain above $32.80, dip-buying remains favored. Near-term positioning suggests a continued push higher, especially if external catalysts—such as weaker jobs data or a dovish Fed tone—materialize.

More Information in our Economic Calendar.