Silver (XAG) Forecast: Gold Rally Grabs Headlines While Silver Stalls Below $34.59

Silver Slips While Gold Surges as Tariff Anxiety Clouds Industrial Demand

Silver prices are retreating even as gold pushes to new all-time highs, exposing a divergence that reflects growing anxiety over the global economic outlook. While bullion continues to attract safe-haven flows driven by tariff risks and institutional buying, silver’s dual role as both a monetary metal and industrial input is leading to hesitation from traders wary of a potential slowdown in global growth.

At 12:46 GMT, XAG/USD is trading $34.12, down $0.01 or 0.02%.

Industrial Exposure Pressures Silver

Silver pulled back modestly on Monday, failing to follow gold’s breakout. Friday’s peak at $34.59 has now become a near-term ceiling, with resistance levels building at $34.87 and $35.40. Support begins at $33.62, with the best structural zone between $32.53 and $31.81. The 50-day moving average sits at $32.37, reinforcing that any move below $32 could shift sentiment more definitively bearish.

The soft action in silver reflects concerns that aggressive U.S. trade policy could hit industrial demand. With President Trump set to announce a round of reciprocal tariffs on April 2—followed by a sweeping 25% auto tariff the next day—markets are bracing for possible supply chain disruptions. Traders are increasingly pricing in margin compression and lower factory orders, with upcoming PMI data and factory orders expected to show whether demand is already stalling.

Gold Rally Highlights Flight to Safety

In sharp contrast, gold surged to a fresh record high of $3,128.14 as investors rotate out of risk assets. The metal is drawing strong institutional support, including strategic buying from China’s top insurers and continued accumulation by central banks and ETFs. The MSCI World Index’s 1.2% drop underscores this flight to safety as traders hedge tariff-related inflation and geopolitical instability.

Despite an overbought RSI above 77, gold’s momentum remains intact, reinforcing the view that current price strength is structurally supported rather than speculative. This contrasts with silver, where industrial exposure leaves the metal more vulnerable to the economic fallout from trade conflict.

Outlook: Silver Faces Headwinds Unless Risk Appetite Rebuilds

Until clarity emerges around trade policy and its impact on global manufacturing, silver is likely to struggle attracting sustained buying. Traders should watch the $34.59 level for signs of trend continuation, but the broader risk-reward remains skewed toward gold in this environment.

Unless upcoming economic data or earnings reports improve the growth outlook, silver may remain rangebound to lower, underperforming its monetary counterpart.

More Information in our Economic Calendar.