Silver (XAG) Forecast: Pressured by Gold Weakness and Rising Dollar

Silver Softens as Gold Weakness and Trade Optimism Weigh

Silver prices eased on Friday, snapping a three-day rally as the metal struggled for fresh momentum. Despite the pullback, silver remains technically supported above its 50-day moving average at $32.63, keeping the broader uptrend intact. Traders are now on watch for the next catalyst to drive prices toward the $34.59 to $34.87 resistance zone.

At 13:17 GMT, XAG/USD is trading $33.18, down $0.40 or -1.20%.

Gold Slips, Dragging Silver Sentiment

Silver came under pressure alongside gold, which is struggling to overtake key pivot resistance at $3,380.20 following signs of improving U.S.-China trade relations. Risk-on sentiment dented safe-haven demand across the board, sending the dollar higher and pulling precious metals lower. A stronger dollar typically acts as a headwind for silver, as it makes dollar-denominated commodities more expensive for overseas buyers.

Trade Developments Boost Dollar, Dampen Metals

The dollar is in a position to post its first weekly gain since mid-March after China granted tariff exemptions on some U.S. imports. Traders are reacting swiftly to every headline, as signs of easing tensions have tempered the need for defensive assets like silver and gold. However, uncertainty remains, with Beijing denying that full trade talks are underway. This leaves metals markets vulnerable to sharp moves on any new developments.

Treasury Yields Slip, But Risk Appetite Caps Gains

U.S. 10-year Treasury yields are edging lower Friday as hopes grew for a de-escalation in trade tensions. Normally, lower yields would bolster non-yielding assets like silver, but increased investor appetite for riskier assets muted the impact. President Trump’s mixed messaging on tariffs and the Fed added to market noise but did not fundamentally shift silver’s underlying technical picture.

Silver Market Outlook: Focus on Support and Breakout Potential

Silver’s bullish structure holds as long as it stays above the 50-day moving average. Immediate upside targets sit between $34.59 and $34.87 if fresh catalysts emerge. However, without stronger safe-haven flows or a sustained move lower in the dollar, the metal may struggle to break higher in the near term. Traders should watch for opportunities on dips toward support while remaining alert to fast-moving headlines.

More Information in our Economic Calendar.