Silver Price Forecast: XAG/USD Rallies Toward $35, But Can Bulls Hold the Line?

Silver prices are rising fast this week, with XAG/USD pushing above $34.38 on Wednesday as bulls attempt to break into territory not seen since 2012. After weeks of sideways chop, the metal finally punched through resistance and is now testing the upper end of its multi-month range.

At the time of writing, silver is trading just under $34.48, up over 2% this week. The rally follows a clean bounce from the $32.98 support zone, as traders pile into metals amid rising inflation risks and renewed safe-haven demand.

The momentum is being driven by positioning ahead of key US economic data. If the data shows signs of a cooling economy or inflation flare-up, metals like silver are likely to benefit.

Why Silver Had Surged, But Now Stalls

• Metals are hot again. Gold’s rally has pulled silver along, and the lagging metal is now catching up quickly.
• Dollar weakness is creating room. The greenback has softened this week, making dollar-denominated assets like silver more attractive.
• Industrial bids remain solid. Silver’s demand from EVs, solar panels, and clean tech continues to support its long-term bull case.
• Pre-data positioning.

Silver Price Levels and Chart Structure

• Immediate resistance at $34.84, bulls are battling to hold above it
• Next upside level is the psychological marker at $35.00, then blue-sky levels beyond
• Support rests at $32.98, followed by $32.17
• RSI is elevated at 73.87, hinting at possible overbought conditions
• MACD is bullish, both signal lines are rising with positive histogram build-up

Momentum looks strong, but the RSI flashing above 70 could mean a short-term cooldown is brewing. However, unless silver loses $32.98 support, the broader trend remains intact.

Can Silver Hit New Highs in 2025?

Silver’s breakout attempt this week feels different. With monetary policy still uncertain and commodity strength picking up across the board, the technical case for higher silver prices is back. If bulls can hold above $34.84 into the weekend, a move toward $36 or higher becomes increasingly likely.

But this won’t be easy. Overbought signals are flashing, and profit-taking near the $35 handle could create volatility. Still, as long as the chart structure stays above $32, silver has room to extend, and possibly even lead the next leg in the metals rally.

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