Technically, silver is at a critical juncture. Prices are holding above layered support at $35.40 and $34.87, both of which are previous tops. A clean break below $34.87 would expose the 50-day moving average at $33.20. On the upside, only a move through $36.89 would confirm a bullish continuation pattern. Until then, traders should expect range-bound action.
Fed Policy and the Dollar: Crosscurrents to Monitor
Silver’s struggle also stems from shifting monetary policy expectations. While soft CPI and PPI prints strengthened the case for Fed rate cuts—supportive for non-yielding assets—the accompanying bounce in Treasury yields and the U.S. dollar is a headwind for silver. The same dollar rally that failed to cap gold’s rise has added pressure to silver, which remains more sensitive to financial conditions and real yields.
Outlook: Break or Fade at Key Levels?
Silver’s near-term direction hinges on whether bulls can defend support near $35.00 and make another attempt at the $36.89 high. A break lower could attract momentum sellers toward the $33 handle, while a sustained push above resistance would shift sentiment bullish. Until a clearer technical signal emerges, traders should stay alert to gold price trends, dollar strength, and signs of industrial demand recovery.
More Information in our Economic Calendar.
