Silver (XAG) Forecast: Bouncing Back—Is a Price Surge to $35 Next?

Silver Edges Higher but Faces Resistance at $32.53 as Volatility Persists

Silver prices are climbing on Monday, with traders closely watching key technical levels. The market faces resistance at $32.53, a Fibonacci level, while support sits at $31.81. A breakout above resistance could lead to a test of last week’s high at $33.39, while a failure to hold support may push prices toward the $31.25 main bottom.

The metal remains confined within a $31.81–$32.53 retracement zone, which is currently dictating its near-term direction.

At 12:21, XAG/USD is trading $32.22, up $0.17 or +0.54%.

Silver Rides Gold’s Rally but Faces Volatility Risks

Silver has been benefiting from gold’s surge, with spot prices recently touching $33.39—its highest since late October. The metal is up 14% so far in 2025, following a 21% gain in 2024, supported by strong demand in both precious and industrial markets.

While some analysts suggest silver could challenge its 10-year peak near $35, others are cautious. Silver has historically lagged behind gold and tends to be more volatile. The metal failed to match gold’s record-breaking run in 2024, leaving traders wary of sustainability in its recent move higher.

U.S. Tariffs and Market Spreads Drive Silver Demand

A key driver of silver’s recent strength is concern over U.S. trade policies. The threat of steep import tariffs, later delayed to March, has contributed to a spike in U.S. Comex silver futures. The March contract was last up 3.3% at $33.79.

At the same time, the premium between CME silver futures and London spot prices has widened, prompting significant inflows into COMEX-approved warehouses. CME silver stocks have jumped 22% to 375.8 million ounces since November, while London vault inventories fell 8.6% in January—the sharpest monthly decline on record. This shift has fueled speculation that silver’s supply chain is tightening, adding to bullish sentiment.

Silver’s High Volatility Raises Caution for Traders

Despite recent gains, silver’s volatility remains a concern. Historically, when gold makes a decisive move, silver’s price swings are often 2.0–2.5 times larger. In 2024, gold set 40 record highs, while silver failed to reach new peaks, leaving traders frustrated.

Technically, last year’s $22–$35 range was unusually wide, compared to the $19–$27 range in the previous year. This suggests that silver could see more sharp swings, especially if global economic uncertainty increases. A potential trade war could dampen industrial demand, which accounts for roughly half of silver’s usage.

Market Forecast: Silver Faces Key Technical Test

Silver’s near-term outlook hinges on the $31.81–$32.53 range. A break above resistance at $32.53 would signal strength, opening the door for a push toward $33.39 and potentially $35. However, a failure to hold support at $31.81 could shift momentum downward, with $31.25 as the next major level to watch.

With volatility remaining elevated and global economic uncertainties at play, traders should brace for sharp price swings in the coming sessions.

More Information in our Economic Calendar.