Silver (XAG) Forecast: Will Silver Market Maintain Its Bullish Outlook Over $36.30?

Silver Holds Gains as Traders Watch Gold, Dollar Index and Fed Rate Path

Silver edged higher in quiet Friday trade, supported by gold’s safe-haven bid and a softer U.S. dollar, with traders assessing the metal’s potential for a push toward 13-year highs next week.

Can Silver Follow Gold’s Lead as Tariff Deadlines Approach?

Gold’s rebound, driven by a weaker dollar index and caution ahead of the July 9 tariff deadline, has helped silver maintain a firm footing. Gold’s safe-haven appeal remains underpinned by uncertainty around President Trump’s tax cuts, trade policy, and a softening dollar, making gold and silver more affordable for non-dollar buyers. This cross-asset bid often sees gold leading during risk-off phases, but silver typically benefits when momentum accelerates.

Technical Picture: Support Levels and a Critical Pivot at $36.30

Silver is holding above a short-term pivot at $36.30, now acting as support, while earlier attempts to break above $37.08 stalled, indicating cautious momentum. Should buying interest pick up, traders will target $37.32, the 13-year high, as a key trigger for further upside.

On the downside, intermediate support sits at $35.38 and the 50-day moving average at $34.50, while the 200-day moving average at $32.38 remains long-term support.

The market’s current consolidation reflects investor indecision, but compression near these resistance levels could set up a breakout if the dollar extends its retreat or if gold decisively clears its resistance near $3348.

Watching the Federal Reserve and Payroll Signals

Stronger-than-expected U.S. nonfarm payrolls showed underlying economic resilience, but slow private-sector job growth keeps traders cautious about the Federal Reserve’s rate outlook. The latest data reduces the immediate pressure on the Fed to cut, though the slower private hiring aligns with a softer dollar tone, indirectly aiding metals.

Gold/Silver Ratio Hints at Potential Favor for Gold

The Gold/Silver ratio has eased from its recent high of 107.004, entering a comfort zone that may favor gold in the near term. However, should gold rally further while silver holds above key support levels, traders could see renewed interest in silver as it plays catch-up in a broader precious metals bid.

Market Forecast: Bias to the Upside on Dips

Silver retains a buy-on-weakness profile above $36.30, with upside potential to retest $37.08 and challenge $37.32 if buying resumes. Should gold break its resistance while the dollar continues to weaken, silver could attract momentum traders seeking breakout opportunities.

A decisive close above $37.32 could open further gains, while dips toward $35.38 may attract support, keeping silver in a constructive stance for the near term.

More Information in our Economic Calendar.