Silver (XAG) Forecast: Trader Reaction to $32.19 Pivot Sets the Tone

Silver Pauses at Key Level as Macro Winds Shift

Silver prices hovered around the crucial $32.19 level on Monday, testing a significant Fibonacci retracement that may define short-term direction. The market has edged higher in early trade, but momentum remains cautious, reflecting hesitation across metals as gold retreats from record highs and broader risk sentiment stabilizes.

At 11:59 GMT, XAG/USD is trading $32.27, down $0.03 or -0.10%.

Gold Pullback and Dollar Weakness Shape Silver’s Tone

Silver is trading in the shadow of gold, which briefly notched an all-time high at $3,245.85 before profit-taking set in. While bullion remains well bid on macro fears and central bank buying, the failed breakout has created short-term drag across the precious metals space. Gold’s pullback toward the $3,100 level has dulled safe-haven appetite, but the broader backdrop—including a weaker U.S. dollar—continues to offer support to silver as a secondary hedge.

Tariff Exemptions Provide Tech-Driven Boost

President Trump’s unexpected tariff exemptions have shifted sentiment in favor of tech and industrial sectors—areas closely linked to silver demand. Smartphones, computers, semiconductors, and related components were spared from new tariffs under fresh guidance from U.S. Customs and Border Protection. This move lifted tech stocks at the open and indirectly underpinned silver, which plays a critical role in electronics and solar manufacturing.

Technical Setup: Narrow Range with Breakout Potential

Silver’s technical posture remains neutral-to-bullish as long as $32.19 holds. A clean break above $32.51—the 50-day moving average—would likely open the door to $34.59–$34.87. Conversely, failure to defend current levels could spark a retreat toward $31.45, the midpoint of the recent rally. Price action around the $32.19 pivot will be key to gauging near-term positioning.

Market Forecast: Bullish Bias, Watch the Tech Link

While gold’s pullback presents a short-term headwind, silver remains underpinned by a mix of industrial support and dollar weakness. The tariff exemption boost to tech demand adds a bullish catalyst unique to silver. With the $32.19 level under test and $32.51 looming overhead, silver is well-positioned for an upside break if macro sentiment stays supportive and gold stabilizes above $3,100.

More Information in our Economic Calendar.