Silver (XAG) Forecast: Silver Rally Takes Off as Dollar Weakens and Buyers Return

Silver Rips 10% as Dollar Weakens and Risk Appetite Returns

Spot Silver rallied on Friday, up nearly 10% on the session. Several factors lined up at once, and traders reacted fast. Stocks rallied, gold climbed, and the overall mood felt more “risk-on” than “run to safety” — which is unusual for a big metals move like this.

On Friday, XAGUSD settled at $77.95, up $7.01 or +9.88%.

Dollar Weakness Opened the Door

One of the biggest catalysts was the U.S. dollar weakening. The dollar index dropped, making dollar-priced metals cheaper for buyers using other currencies. When the dollar falls, silver and gold typically respond — and Friday was no exception.

A softer dollar gives silver two boosts at once: it costs less for foreign investors to buy, and it relieves pressure on traders who were short or sitting on the sidelines waiting for a dip. That combination pushed silver higher quickly.

Stocks and Crypto Rallied — Risk Was Back On

Another major story Friday was the rally in stocks and crypto. Major global equity indexes posted their biggest gains in months, and Bitcoin bounced back hard. That signals traders were feeling better about risk assets across the board.

Gold and silver both climbed along with stocks, which is different from the usual “fear trade” where metals rise when equities fall. This wasn’t panic buying — it was broad-based appetite for assets that had been beaten down.

Gold Led, Silver Amplified

The metals didn’t move in isolation. Gold had a strong day, up several percent, with traders pointing to bargain hunting and the weaker dollar as drivers. Because of thinner conditions, silver tends to exaggerate whatever gold does, so when gold got moving, silver went even further.

The gold/silver relationship matters here. When gold confirms strength, momentum traders pile into silver more aggressively because it’s more volatile and offers bigger percentage moves in a shorter time. Friday was a textbook example.

Iran Talks Eased Immediate Fears

U.S.–Iran nuclear talks took place in Oman on Friday, which eased some concern that Middle East tensions would suddenly flare up again. That kind of news usually calms markets slightly, and in this case it seemed to take pressure off both oil and metals while letting traders refocus on positioning.

The takeaway for precious metals wasn’t panic — it was an adjustment to fewer immediate geopolitical shocks. That allowed fundamentals like dollar weakness and yield movements to take center stage.

Volatility Set the Stage

There was already a lot of volatility baked into silver before Friday. The metal had swung wildly in recent sessions — dropping hard, then bouncing. That back-and-forth created room for a sharp rebound on any positive signal traders could grab onto.

When a market gets that stretched, it doesn’t take much to trigger a snapback. Friday’s combination of dollar weakness, risk appetite, and gold strength gave traders exactly what they needed.

Multiple Forces, One Big Move

Friday wasn’t driven by a single headline. It was the way markets reacted to multiple cross-currents hitting at the same time: a softer dollar, stocks rallying hard, gold moving up strongly, and calmer geopolitical headlines. Together, those forces pushed silver up sharply.

The question now is whether this sticks. If the dollar stays weak and risk appetite holds, silver could stretch higher. But if sentiment shifts back toward caution or the dollar catches a bid, some of Friday’s gains could unwind fast.

For now, bulls have control. The move had breadth — it wasn’t just short-covering or panic. Real money stepped in, and that makes the rally more credible heading into next week.

More Information in our Economic Calendar.