Thursday’s close near $35.46 puts silver right at a key support zone, defined by previous tops at $35.40 and $34.87. If $34.87 is breached, traders could see a move down toward the 50-day moving average at $33.10. That said, a decisive trade through $36.89 would confirm a resumption of the uptrend. The metal has still managed to hold weekly gains, but it’s on fragile footing without a catalyst.
Fed and Dollar Moves Offer Crosswinds for Silver
The broader macro backdrop is also weighing on silver’s near-term appeal. Rising U.S. Treasury yields and a stronger dollar, both reacting to geopolitical risks and adjusted Fed rate-cut expectations, have helped support gold but increased headwinds for silver. With the dollar index bouncing to 98.33 and yields climbing, especially in the short end, silver’s industrial demand story remains subdued under tighter financial conditions.
Long-Term Drivers Still Intact: Green Energy and Supply Constraints
Despite the pullback, long-term structural factors remain supportive for silver. Demand for solar panels, EVs, and battery technologies continues to rise, while global silver production remains constrained. With limited mine supply growth and an expanding role in the global energy transition, any significant dip in silver prices is likely to be met with strategic buying.
Silver Price Forecast: Watch for a Breakout or Breakdown
Near-term, silver remains vulnerable to a break below $34.87, which would invite momentum sellers and likely push prices toward the $33.10 support. However, if bulls regain control and reclaim $36.89, a fresh leg higher could be in play. For now, traders should watch for signals from the dollar and gold, while respecting silver’s own critical levels and industrial demand indicators.
More Information in our Economic Calendar.