Silver (XAG) Forecast: Breakouts Above $33.45 Pivot as Safe-Haven Demand Sparks Rally

Silver Rebounds Sharply as Safe-Haven Demand Intensifies

Silver surged on Tuesday, reversing last week’s pullback, as weak U.S. consumer confidence data and tariff uncertainty fueled safe-haven buying. With the metal reclaiming ground above its key technical pivot, trader sentiment has turned bullish again, supported by broader macro risks and a constructive technical structure.

At 15.07 GMT, XAG/USD is trading $33.70, up $0.68 or +2.05%.

Technical Break Reinforces Bullish Case

After briefly dipping to $32.66 last week, silver has regained the $33.45 pivot, which now serves as near-term support. The level is seen as a trigger for momentum trades, and a sustained move above it could drive a retest of the recent high at $34.24. A breakout above that zone would open the path toward resistance between $34.87 and $35.40. Conversely, a failure to hold $33.45 could expose the downside to the $32.53–$31.81 retracement range.

The 50-day moving average at $32.09 remains a key technical guidepost. Silver has respected this average since December, reinforcing its role as a broader trend indicator. As long as price action remains above it, technical traders will continue favoring the long side.

Gold Strength Lends Support

Silver continues to benefit from strength in the gold market, which is holding above $3,000 per ounce. Persistent geopolitical tensions and a growing belief that the Federal Reserve may ease policy later this year are underpinning both metals. Gold is consolidating below resistance at $3028.53, with any breakout likely to spill over into silver, amplifying bullish flows in both markets.

Confidence Collapse Fuels Demand

U.S. consumer confidence fell sharply in March, with the Conference Board’s expectations index plunging to its lowest level in 12 years at 65.2. The deterioration was broad-based, hitting sentiment across age and income groups. The report adds to concerns that the U.S. economy is headed toward recession territory, bolstering demand for non-yielding assets like silver.

Rate cut expectations also gained traction after Fed officials, including Atlanta Fed President Raphael Bostic, acknowledged the potential for easing by year-end. Lower rates diminish opportunity costs, strengthening the case for precious metals.

Silver Outlook: Bias Tilted to the Upside

With risk sentiment deteriorating and technicals aligned to the upside, silver remains positioned for further gains. A close above $34.24 would confirm bullish momentum, with traders eyeing $35.40 as a near-term target. Any dips toward $33.45 or $32.66 are likely to be viewed as buying opportunities, particularly if macro headwinds persist and gold continues to hold above $3,000.

More Information in our Economic Calendar.