Silver Holds Above $32.00 as US Dollar Weakens, Eyes $33.00 Breakout

Silver Holds Above $32.00 as US Dollar Weakens, Eyes $33.00 Breakout

Silver (XAG/USD) climbed back to around $32.60 on Tuesday after bouncing from intraday lows of $32.13, extending a recovery following two consecutive days of losses. While the metal appears range-bound, it is gaining traction due to a weakening US Dollar and sustained industrial demand, even as easing geopolitical tensions support overall market sentiment.

Safe-haven demand for silver had softened in recent sessions amid signs of de-escalation in global tensions and improved risk appetite. Reports suggesting Russia and Ukraine are open to ceasefire talks, combined with an interim tariff truce between the US and China, have helped stabilize global trade concerns. Nevertheless, long-term support for silver remains strong due to robust industrial demand. According to forecasts from the Silver Institute, industrial consumption is expected to exceed 700 million ounces by 2025, driven by increased use in electric vehicles, solar panels, and electronics.

Meanwhile, the US Dollar Index (DXY) fell to a fresh weekly low near the 100.00 level on Tuesday, following a downgrade of the US credit rating by Moody’s from Aaa to Aa1. The downgrade reflects growing concerns over the ballooning US national debt and widening fiscal deficit. The weakening dollar has given a boost to dollar-denominated commodities like silver.

From a technical perspective, silver is currently fluctuating around its 21-day Exponential Moving Average (EMA) within a symmetrical triangle pattern—typically a sign of impending breakout. The key resistance level lies at $33.00, and a breakout above it could trigger further bullish momentum in the near term.