Silver Price Forecast: XAG/USD Hits 13-Year Highs Near $36.50 Amid Global Economic Concerns

Silver Price Forecast: XAG/USD Soars to 13-Year High on Fed Cut Bets and Trade Concerns

Silver (XAG/USD) extended its bullish momentum on Monday, marking a new 13-year high at $36.42 per troy ounce. The rally is fueled by increased safe-haven demand, ongoing macroeconomic uncertainty, and growing expectations for U.S. Federal Reserve rate cuts starting in the fall.

Safe-Haven Surge Amid Global Volatility

Amid fears of economic slowdown and geopolitical instability, investors are pouring into non-yielding assets like Silver. Heightened volatility in global trade, particularly surrounding US-China relations, is prompting market participants to seek safer alternatives.

Trump administration officials, including US Treasury Secretary Scott Bessent, are expected to meet Chinese counterparts in London on Monday. These talks follow a period of elevated trade tension that has weighed on global growth expectations.

Fed Rate Cut Forecast Adds Tailwind

Citigroup released a revised forecast projecting that the Federal Reserve will begin cutting interest rates by 25 basis points at each of the September, October, and December policy meetings. The bank also expects additional cuts in January and March 2026.

This dovish outlook supports precious metals, especially Silver, which benefits from a lower interest rate environment due to its non-yielding nature.

“We now expect the Fed to begin its easing cycle in September, with five consecutive 25 bps cuts,” Citigroup stated on Monday.

Strong US Labor Data Offsets Some Rate Cut Speculation

However, strong US Nonfarm Payrolls (NFP) data for May, released on Friday, showed 139,000 jobs added, exceeding expectations of 130,000. This robust labor performance supports the case for the Fed to hold rates steady in the short term, potentially limiting upside for Silver in the near term.

Technical Outlook

• Resistance: The next major resistance is seen at $37.00, a psychological barrier.
• Support: Immediate support lies near $35.60, followed by $34.90.
• The Relative Strength Index (RSI) shows bullish momentum but warns of potential overbought conditions.

Related Tredu Reads:

• Gold and Silver Rally Amid Trade Concerns – What’s Next?
• Federal Reserve Rate Cut Expectations Explained
• Why Safe-Haven Assets Are Surging in 2025

Conclusion

Silver’s price trajectory remains firmly bullish, driven by a blend of macroeconomic risks, Fed policy expectations, and renewed safe-haven demand. While short-term technical corrections may occur, the broader outlook for Silver remains constructively upward, especially if global trade tensions persist and central banks begin easing policy.