Silver (XAG) Forecast: Silver News Focused on Two Levels—Breakout or Buy-the-Dip?

Silver Pauses After Breakout—Is the Dollar or Gold Driving the Pullback?

Silver prices edged lower Tuesday, giving back some of Monday’s strong gains that saw the market break through key resistance at $33.70. The retreat reflects profit-taking as traders reassess short-term positioning, with rising attention on the U.S. dollar and gold’s technical posture.

At 12:34 GMT, XAGUSD is trading $34.29, down $0.46 or -1.34%.

Dollar Recovery Caps Metals Rally

The U.S. Dollar Index (DXY) firmed after touching 98.58, its lowest level since April 22. Short-covering and profit-taking helped lift the greenback, weighing on dollar-priced metals. The stronger dollar made silver and gold less attractive to foreign buyers, cooling the rally before silver could test the $34.87 and $35.40 resistance levels.

Investors are also responding to geopolitical tensions, particularly a likely phone call this week between President Trump and China’s Xi Jinping. The White House has accused China of violating previous trade promises, adding another layer of uncertainty for risk assets. That tension initially supported metals, but the dollar’s strength ultimately stalled the rally.

Technical Picture Still Supportive

Silver’s clean break above $33.70 redefined this level as near-term support. This remains the first downside level to watch, while deeper support lies at the 50-day moving average of $32.80. As long as silver stays above this area, bullish sentiment remains intact.

Upside targets remain at $34.87 and $35.40. While momentum faded on Tuesday, the broader structure still favors additional gains if buyers regain control.

Gold’s Pullback Adds Context to Silver’s Pause

Silver’s behavior often tracks gold, which also slipped Tuesday after reaching a four-week high. Gold weakened as the dollar recovered and traders locked in gains. However, it remains technically supported above $3310, with stronger backing near its 50-day moving average of $3242. If gold stabilizes or resumes its upward move, that would likely underpin silver’s next leg higher.

Silver Forecast: Holding Gains, Watching the Fed and the Dollar

Silver is consolidating just above its breakout point at $33.70. If this support holds and gold remains firm, silver is well-positioned to retest $34.87 and $35.40. The next catalyst will likely come from Federal Reserve commentary and upcoming U.S. jobs data. Without a strong dollar rally or aggressive Fed tone, silver has room to resume its advance.

More Information in our Economic Calendar.