Silver Price Forecast: XAG/USD Climbs to $36.35 on USD Weakness and Industrial Demand

Silver Price Forecast: XAG/USD Rises to $36.35 on Weaker USD and Strong Industrial Demand

Silver (XAG/USD) continues its upward trajectory, edging higher to around $36.35 during early European trading hours on Thursday. The rise is driven by a weakening US Dollar (USD) and increasing industrial demand for the white metal.

Weakening US Dollar Lifts Silver

The US Dollar faces pressure amid concerns over the Federal Reserve’s independence. President Donald Trump's latest comments about potentially replacing Fed Chair Jerome Powell by September or October are raising fears of political interference in monetary policy. This erosion of Fed credibility has triggered selling pressure on the Greenback, making USD-denominated assets like silver cheaper and more attractive to foreign buyers.

As silver becomes more affordable, buying interest has increased, supporting the metal's price.

Strong Industrial Demand Supports Bullish Outlook

In addition to a weaker USD, silver is also benefiting from robust industrial demand. The Silver Institute reports that 2025 could mark a new record for global silver demand, thanks to expanding applications in:

• Electronics
• Photovoltaics (solar panels)
• Jewelry and silverware

The metal’s dual nature as both a monetary and industrial asset is proving to be a significant tailwind in the current macroeconomic landscape.

Market Outlook: Eyes on US GDP and Fed Commentary

Later today, investors will closely watch the release of the US Q1 GDP Growth Rate, along with any new Fed commentary (Fedspeak). These events could further influence expectations around interest rate policy and, by extension, the trajectory of silver prices.

Conclusion

With the US Dollar weakening and industrial demand surging, silver prices appear poised for further gains in the short term. The XAG/USD pair’s current bullish momentum may continue if the Fed’s independence remains in question and economic data supports a dovish outlook.

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