Silver Price Forecast: XAG/USD Rally Stalls Above $33.00 Amid Stronger US Dollar

Silver Price Forecast: XAG/USD Rally Stalls Above $33.00 Amid Stronger US Dollar

Silver (XAG/USD) prices pulled back on Wednesday, pausing a recent rally after testing resistance around $33.70 per ounce. The retreat follows a shift in investor sentiment, as improving risk appetite reduces demand for safe-haven assets like silver. Meanwhile, a stronger US Dollar (USD) continues to exert downward pressure, making silver more expensive for holders of other currencies.

US Economic Data Drives Market Sentiment

The release of positive US Consumer Confidence data on Tuesday buoyed markets, easing concerns over rising government debt and encouraging demand for riskier assets such as equities. Despite a weaker-than-expected reading in US Durable Goods Orders, overall market sentiment remains optimistic, further reducing silver’s appeal in the short term.

Technical Outlook: Key Support and Resistance Levels

Silver prices are currently consolidating above a key support level at $32.89, which is helping to limit downside momentum. The $33.70 zone remains a near-term resistance barrier. A sustained move above this level could open the door to further gains, while a break below support could trigger additional selling pressure.

Traders Eye Fed Meeting Minutes for Next Clues

Market participants are now focused on the upcoming release of the Federal Reserve’s May meeting minutes, expected later today. These minutes could provide fresh insight into the Fed's interest rate outlook, which would significantly impact the trajectory of precious metals like silver. Hawkish signals may strengthen the USD further, while dovish commentary could reinvigorate silver bulls.

📈 XAG/USD Price Forecast Summary

• Resistance: $33.70, $34.25
• Support: $32.89, $32.40
• Trend: Range-bound, with a slight bearish bias amid USD strength
• Outlook: Cautiously neutral ahead of Fed commentary

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