Silver (XAG) Forecast: Price Prediction Hinges on 50-Day Moving Average at $32.80 Today

Silver Slips Below $33, But Holds Key Support—What’s Next for Bulls?

Silver prices are under modest pressure, dipping on Thursday after briefly testing April’s high at $33.70. The metal found support near the 50-day moving average at $32.80, a level now acting as a battleground for short-term positioning. While the broader trend remains constructive, silver’s inability to extend gains above resistance has traders eyeing technical indicators and external market signals for direction.

At 13:46 GMT, XAG/USD is trading $32.97, down $0.43 or -1.28%.

Dollar Strength and Rising Yields Put a Cap on Precious Metals

The pullback in silver mirrors similar price action in gold, which gave up early gains after touching a two-week high at $3345.47. A firmer U.S. dollar—up 0.2% on the day—and climbing Treasury yields pressured both metals. The 30-year Treasury yield hit 5.14%, its highest since October 2023, while the 10-year rose to 4.62%. Higher yields tend to weigh on non-interest-bearing assets like silver and gold by increasing the opportunity cost of holding them.

Support Holds for Now, But Technicals in Focus

Silver’s near-term fate hinges on its reaction to the 50-day moving average. A sustained hold above $32.80 could reinforce bullish sentiment and potentially trigger another challenge of $33.70. A breakout above that level would open the door to a move toward $34.59. On the downside, a break below $32.80 risks a drop to Fibonacci support at $32.19, with stronger backing at the 200-day moving average at $31.42.

Gold’s Fiscal Safety Bid Offers Partial Support to Silver

Gold continues to find underlying support from concerns over U.S. fiscal policy. Moody’s recent downgrade of the U.S. credit rating, citing a ballooning federal debt now exceeding $36 trillion, has stirred safe-haven interest. A controversial tax-and-spend bill passed by the House is expected to push deficits even higher, raising fears of a supply glut in Treasuries and supporting demand for hard assets like gold—and by extension, silver.

Silver Outlook: Watching $32.80 as Sentiment Gauge

Traders should keep a close eye on silver’s behavior around the 50-day moving average. A bounce from here could trigger renewed upside momentum, especially if gold finds a base above its $3310 pivot. However, stronger yields and a resilient dollar continue to cap enthusiasm. For now, silver bulls need a firm reclaim of $33.70 to regain control, while a break below $32.80 would likely trigger technical selling into lower support levels.

More Information in our Economic Calendar.