Silver (XAG) Forecast: Bulls Eye $33.39 as Gold’s Record High Lifts Silver Market

Silver Rises as Gold Hits Record, Fed Minutes Take Center Stage

Silver prices are inching higher as bullish momentum builds, supported by safe-haven flows and expectations surrounding the Federal Reserve’s next move. With gold reaching a fresh all-time high, silver remains in focus, particularly as its industrial and monetary demand factors collide.

At 12:37 GMT, XAG/USD is trading $32.92, up $0.03 or +0.10%.

Silver Holds Key Support, Eyes Higher Levels

Silver is holding above a key Fibonacci level at $32.53, turning it into new support. If upside momentum continues, traders will be watching for a breakout above last week’s high of $33.39. This could trigger an acceleration toward $34.87, the next key resistance level.

On the downside, any move below $32.53 would signal weakness and open the door for a retest of $31.81, a key 50% retracement level. The current price action suggests dip-buying interest remains strong, particularly with the broader market sentiment leaning toward precious metals.

Gold’s Rally Lends Support to Silver

Gold’s surge to a record $2,947.08 has reinforced silver’s bullish sentiment. Safe-haven demand is driving both metals, particularly after U.S. President Donald Trump’s tariff threats rattled markets. The proposed 25% tariffs on auto imports, semiconductors, and pharmaceuticals have raised fears of economic disruptions, prompting investors to seek protection in hard assets.

Historically, gold and silver have moved in tandem during periods of heightened uncertainty. If gold maintains its momentum and challenges the $3,000 mark, silver could continue to rise in its wake.

Fed Minutes Could Influence Short-Term Moves

The Federal Reserve’s meeting minutes, due later today, are a key focus for traders. With interest rates currently held at 4.25%-4.50%, markets are looking for signals on how long the central bank intends to keep policy restrictive. Any hawkish surprises—such as concerns over persistent inflation—could push Treasury yields higher and strengthen the U.S. dollar, potentially capping silver’s gains.

Conversely, if the Fed acknowledges economic slowing, silver could benefit. A prolonged rate pause or hints at future cuts would likely support precious metals, as lower rates reduce the opportunity cost of holding non-yielding assets.

Silver Outlook: Bulls in Control, But Watch for Volatility

Silver remains in a bullish structure, with $32.53 acting as a pivotal support level. If buying pressure continues, a move toward $33.39 and possibly $34.87 remains in play. However, traders should be cautious of near-term volatility driven by the Fed minutes and broader economic data.

While tariffs could weigh on silver’s industrial demand, its role as a monetary asset should keep it well-supported, especially if inflation fears persist. For now, silver bulls have the upper hand, but market reactions to the Fed will be key in determining the next big move.

More Information in our Economic Calendar.