Silver (XAG) Forecast: Rebound Gains Traction as Bulls Target 200-Day Moving Average

Silver Eyes Recovery as Technicals and Industrial Demand Set Tone

Silver is showing signs of renewed strength this week, posting a second consecutive session of gains after bouncing from a key support zone. Traders are watching closely as the market tries to reclaim critical resistance levels, with bullish sentiment building on both technical and macroeconomic cues.

At 12:24, XAGUSD is trading $30.31, up $0.23 or +0.77%.

Bulls Defend Major Fib Level, Eye Key Resistance

Silver found solid buying interest at $28.31 on Monday, slightly below the 50% retracement level of $28.40. This level has now become a pivotal short-term floor. If this base holds, technicals suggest a move toward the $31.45 pivot is on the table. However, the first real test comes at the 200-day moving average sitting at $30.90—an area that could determine whether silver resumes its uptrend or stalls again.

The rally is gaining traction partly due to a broader bullish environment for precious metals. Gold’s hold above its 50-day moving average and a softening U.S. dollar are supporting sentiment in silver as well. Gold is consolidating above $3,000, and if it breaks through $3,062.20, it could pull silver higher in sympathy.

Industrial Demand in Focus as China Looms Large

While gold benefits from central bank buying and geopolitical hedging, silver’s dual role as both a monetary and industrial metal puts a spotlight on China’s economy. Concerns over Chinese demand remain front and center. Any further weakness from Beijing could weigh on silver’s upside potential, especially if it disrupts manufacturing or solar panel production, two of silver’s major industrial drivers.

At the same time, the global trade environment is adding fuel to precious metals. New tariffs from the U.S. and China’s aggressive countermeasures are raising concerns across equity and bond markets. This uncertainty is drawing capital into safe-haven assets, keeping silver’s downside contained.

Silver Outlook: Bullish Momentum Hinges on $30.90 Break

The near-term setup for silver favors the bulls—provided the market can clear the 200-day moving average at $30.90. A successful break would likely trigger a push toward the $31.45 pivot, with momentum extending into the low $32s if industrial demand holds steady.

However, failure to clear $30.90 could lead to renewed selling and a retest of $28.40. For now, traders should monitor both Fed commentary and China headlines, which remain the key drivers in silver’s next move.

More Information in our Economic Calendar.