Silver Nears $33.50 as Haven Demand Grows Amid US Debt Concerns

Silver Price (XAG/USD) Nears $33.50 as US Debt Worries Drive Safe-Haven Demand

New York, May 22, 2025 – Silver extended its three-day rally on Wednesday, climbing 0.21% as demand for safe-haven assets remained strong amid rising concerns over U.S. fiscal stability. XAG/USD is currently trading at $33.45, buoyed by a weaker U.S. dollar and growing investor caution.

The recent downgrade of U.S. sovereign credit by Moody's, combined with political uncertainty surrounding the federal budget vote, has spurred a risk-off sentiment in global markets. In response, investors are increasingly turning to precious metals, including silver, as a hedge against economic instability and potential debt-related disruptions.

Throughout the day, silver traded within a tight range between $33.00 and $33.50, closing at $33.40, just under the first key resistance level. The Relative Strength Index (RSI) remains bullish, indicating momentum is still favoring the upside.

A confirmed breakout above $33.50 could clear the path for silver to test the next major resistance at $34.00. However, any decline below $33.00 would likely trigger a technical pullback, with support seen at the 100-day Simple Moving Average (SMA) near $31.98 and the 200-day SMA around $31.30.

Market participants will be closely watching developments in U.S. fiscal policy and economic data in the coming sessions, which may further influence safe-haven flows and silver’s short-term direction.