Silver Jumps Above $33.00 as US Dollar Weakens – Bulls Eye $34.00

Silver Price Forecast: XAG/USD Jumps Above $33.00 as USD Softens

Silver (XAG/USD) rallied sharply on Tuesday, climbing above the key $33.00 level for the first time since April. The move came as the US Dollar weakened across the board, prompting increased demand for safe-haven assets amid rising uncertainty in US fiscal and trade policy.

At the time of writing, XAG/USD is trading near $33.15 per troy ounce, posting a gain of over 1% on the day. The surge in silver prices is largely driven by a mix of macroeconomic concerns, including last week's credit rating downgrade of US government debt by Moody’s and expectations of a ballooning federal deficit tied to President Trump’s proposed tax bill.

Technical Outlook: Momentum Shifts in Favor of Bulls

From a technical perspective, the breakout is significant. Silver has cleared the 50-day Simple Moving Average (SMA) at $32.75 and pushed above a descending trendline drawn from the April and May highs. This trendline break, around the $32.70–$32.85 zone, confirms a potential continuation of the bullish trend.

Momentum indicators also support further upside. The Relative Strength Index (RSI) has turned higher and remains comfortably above the 50 mark, signaling increased buying interest. Should this momentum continue, the next bullish targets lie at $33.50 and then $34.00—both acting as minor resistance levels from previous price action.

Key Levels to Watch

• Immediate resistance: $33.50, followed by $34.00
• Support: $33.00 (psychological and breakout level)
• Stronger support: 100-day SMA near $31.98

If XAG/USD fails to hold above $33.00, a pullback toward the 100-day SMA could follow. However, current momentum and technical confirmation favor the bulls in the near term.

Market Sentiment and Macro Drivers

Global investors are increasingly positioning themselves in non-yielding assets like silver as uncertainty around US fiscal stability grows. The weakening Dollar, driven by Moody’s downgrade, potential long-term deficits, and rising stagflation risks, has further boosted silver’s appeal.

With broader financial markets displaying risk aversion and safe-haven demand rising, silver could continue its rally—especially if upcoming US economic data underwhelms or global central banks stay on a path of easing.