Silver Price Forecast: XAG/USD Eyes Breakout at $36.60 Amid Bullish Flag Formation

Silver Price Forecast: XAG/USD Eyes Breakout at $36.60 Amid Bullish Flag Formation

Silver (XAG/USD) continues to trade in a consolidation zone above $36.00, supported by a strong safe-haven narrative. The white metal is approaching the upper boundary of a potential bullish flag pattern, currently marked at $36.60. A confirmed breakout above this resistance could unlock further upside toward retesting the recent all-time high near $37.00 seen earlier in June.

Technical Outlook: Bullish Flag Formation in Focus

Silver is moving within a declining channel, which is typical in a bullish flag pattern. This pattern typically follows a strong uptrend, and a successful break above the upper trendline resistance at $36.60 would validate bullish continuation. Key support rests at $36.00, maintaining structure for further upward movement.

Geopolitical Risks Underpin Demand

The ongoing Israel-Iran conflict, intensified by US President Trump’s early exit from the G7 summit, has reignited safe-haven flows into precious metals. Trump’s call for the National Security Council to prepare for potential escalation has added to investor caution, keeping XAG/USD well-supported.

Macro Outlook: Fed and Central Bank Meetings Ahead

Despite geopolitical tensions, market volumes remain thin as investors await a cluster of key central bank decisions, particularly the Federal Reserve's monetary policy announcement midweek. If the Fed signals dovish intentions or rate cuts ahead, it could amplify silver’s bullish momentum.

What to Watch Next

• A daily close above $36.60 could activate bullish momentum.
• $37.00 remains the psychological and technical barrier to beat.
• Traders will closely monitor Fed language for policy direction clues.

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