Silver Price Forecast: XAG/USD Surges Past $36.00 as US Dollar Weakens

Silver Price Forecast: XAG/USD Surges Past $36.00 as US Dollar Weakens

Silver (XAG/USD) gained nearly 1% on Wednesday, climbing above the $36.00 mark as the US Dollar weakened due to month-end flows and easing US Treasury yields. At the time of writing, XAG/USD is trading around $36.25, bouncing off an intraday low of $35.68.

This price action aligns with a bullish shift in sentiment, as traders continue to favor precious metals amid growing uncertainty in currency markets.

Technical Analysis: Momentum Builds for XAG/USD

Silver’s bullish momentum is confirmed by a ‘Morning Star’ candlestick pattern on the daily chart—a formation often signaling the start of an upward reversal. The Relative Strength Index (RSI) remains comfortably above the midline, indicating strong buying pressure and directional strength.

Key Levels to Watch

• Immediate Resistance: $36.42
• Next Major Resistance: $37.31
• Support Level: $35.29
• 50-Day Simple Moving Average (SMA): $33.95

Traders should watch for a potential breakout above $36.42, which could open the door to a test of $37.31. On the downside, a pullback to $35.29 may present a buying opportunity if the uptrend remains intact.

US Dollar Weakness Supports Silver Rally

Month-end portfolio rebalancing flows and expectations of falling US Treasury yields have weighed on the US Dollar Index (DXY). As the greenback loses ground, silver—priced in USD—becomes more attractive to investors seeking alternative stores of value.

Falling yields reduce the opportunity cost of holding non-yielding assets like silver, adding further bullish pressure to the precious metals market.

XAG/USD Outlook: Can the Rally Continue?

If current momentum continues, XAG/USD could extend gains toward the $37.31 resistance area. A sustained break above that level would signal a strong bullish continuation, possibly inviting further institutional interest.

However, short-term consolidation near $36.00 is also possible, especially as traders reassess macroeconomic data and Fed commentary heading into July.

Conclusion: Silver at Crossroads With Bullish Bias

With bullish chart patterns, a weakening dollar, and supportive macro factors, silver prices are poised for further gains. However, traders should monitor key resistance and support levels and watch for volatility during US economic releases.

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• What Is the RSI Indicator? A Trader’s Guide to Momentum
• Forex Outlook: How Treasury Yields Impact Currency Markets
• How to Trade Silver in Volatile Markets

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