Silver (XAG) Forecast: Traders Eye $32.19 as as Dollar Cracks and Gold Hits $3,237

Silver Tracks Gold Higher as Safe-Haven Demand Surges

Silver prices moved higher on Friday, boosted by both technical strength and broader safe-haven demand. As gold surged to new highs above $3,200, silver followed suit, testing key retracement levels that may open the door to further gains. Trader focus remains locked on price action around major support and resistance areas.

At 11:44 GMT, XAGUSD is trading $31.41, up $0.18 or +0.58%.

Price Targets: Retracement Zone Now in Play

Silver is currently testing the lower boundary of its short-term retracement zone from $34.59 to $28.31. The 50% retracement sits at $31.45, with the 61.8% retracement at $32.19. A break above $31.45 would be a bullish signal, increasing the likelihood of a push toward the 61.8% level. Above that, the next resistance is the 50-day moving average at $32.48.

On the downside, the 200-day moving average at $30.92 is now immediate support. A move below this level would suggest fading momentum, potentially exposing the market to further weakness toward $29.91.

Gold’s Rally Adds Momentum

Gold’s explosive move to $3,237.96 has provided tailwinds for silver. With traders rotating out of U.S. assets and into hard assets, gold has become the primary safe-haven bid, dragging silver higher in tandem. Strong ETF inflows and central bank buying continue to support the gold market, indirectly reinforcing bullish positioning in silver.

China’s Trade Conflict Raises Industrial Demand Risk

Silver’s industrial demand side is facing uncertainty as the U.S.–China trade conflict escalates. The U.S. slapped 145% tariffs on Chinese imports, and Beijing responded with 125% tariffs on U.S. goods. China is a top importer of silver for industrial use, so traders are closely watching for any fallout that could hit physical demand in the months ahead.

Confidence Cracks in Dollar and Bonds

The broader macro picture supports precious metals. The 10-year Treasury yield spiked to 4.45%, the sharpest weekly rise since 2001, while the 30-year yield reached 4.90%. Meanwhile, the U.S. dollar dropped to a 10-year low vs. the Swiss franc and a six-month low vs. the yen. This rare dual exit from Treasuries and the dollar signals deep investor unease and favors metals.

Market Outlook: Holding $30.92 Keeps Bulls in Control

As long as silver stays above $30.92, upside targets remain valid. A confirmed breakout above $31.45 would set the stage for a move to $32.19, and potentially $32.48. With gold holding firm above $3,200 and the risk backdrop still unresolved, silver remains in demand as both a hedge and a secondary safe haven.

More Information in our Economic Calendar.