Silver (XAG) Forecast: Is a Breakout Coming as Gold’s Rally Strengthens?

Gold’s Surge: Can Silver Ride the Wave to Higher Highs?

Silver prices are edging higher, fueled by gold’s relentless strength and rising market uncertainty. With gold hovering near record levels, silver is gaining momentum as traders seek alternative safe-haven assets. A key technical level at $32.53 is now in focus, with bullish momentum poised to accelerate if resistance is breached.

At 12:10 GMT, XAG/USD is trading $32.47, up $0.07 or +0.21%.

Will Gold’s Unstoppable Rally Keep Lifting Silver?

Gold remains firmly in an uptrend, driven by safe-haven demand amid economic uncertainty. President Donald Trump’s aggressive tariff policies have heightened concerns over global trade, pushing investors toward gold as a hedge.

Central bank demand continues to provide strong support, with analysts at Commerzbank noting that institutional buying remains steady despite a lack of fresh data. Adding to the bullish case, expectations of Federal Reserve rate cuts in 2025 have strengthened, further boosting gold’s appeal.

Goldman Sachs has raised its year-end gold target to $3,100 per ounce, citing structural demand from central banks and growing trade-related volatility. With gold already up nearly 10% year-to-date, its momentum remains strong, creating a favorable backdrop for silver.

Will Silver Break Through Resistance or Face a Pullback?

Silver is closely tracking gold’s movement, currently testing a critical Fibonacci resistance level at $32.53. A decisive breakout above this level could spark an acceleration toward last week’s high of $33.39, with no major resistance beyond that point.

However, failure to clear $32.53 could invite selling pressure, potentially triggering a pullback toward $31.81. This level will be key for traders looking to buy into any dips, as broader market fundamentals remain supportive.

What’s Next for Silver: Breakout or Consolidation?

Gold’s strength continues to provide a solid foundation for silver’s rally. If silver successfully breaks above $32.53, the next upside target will be $33.39 and beyond. A rejection at this level, however, could lead to a temporary dip, offering new entry opportunities.

With ongoing trade uncertainty and gold maintaining its bullish momentum, silver is well-positioned for further gains—provided it can clear this critical resistance level. Traders should closely monitor price action as silver approaches this make-or-break zone.

More Information in our Economic Calendar.