Silver (XAG) Forecast: Poised for Multi-Year High as Tariffs and Fed Minutes Loom
Silver (XAG/USD) is gaining bullish momentum and appears set to challenge multi-year highs, fueled by a combination of tariff-related tensions and heightened anticipation around the US Federal Reserve’s meeting minutes.
As investors assess economic risks stemming from potential US trade measures and gauge the central bank's interest rate stance, silver has emerged as a favored safe-haven and industrial commodity.
💹 Silver Market Snapshot
Current Spot Price (XAG/USD): $31.40
Resistance Zone: $32.00 – $32.50 (multi-year high zone)
Support Zone: $29.80 – $30.20
Weekly Performance: +2.8%
🔍 Key Drivers Behind Silver’s Bullish Outlook
1. Tariff Escalation Risks
With the US hinting at additional trade measures and China expected to retaliate, investors are hedging risk with precious metals like silver. These developments are also expected to impact industrial demand and inflation outlook—both crucial for silver pricing.
2. Fed Minutes in Focus
Traders are closely watching the upcoming Federal Reserve meeting minutes for clues about future monetary policy. A dovish tilt could trigger fresh demand for non-yielding assets like silver, while a hawkish tone may spark volatility.
3. Dual Nature of Silver
Unlike gold, silver’s unique blend of industrial utility and safe-haven appeal positions it advantageously in uncertain environments. Rising global solar panel production and electronics manufacturing continue to support demand.
📈 Technical Analysis: XAG/USD
Trend: Strong bullish continuation
RSI: Hovering near overbought, suggesting possible consolidation before next leg up
200-Day Moving Average: Well below current price, confirming long-term bullish structure
A decisive break above $32.50 could open the door toward $34.00 and beyond, levels last seen in mid-2012.
✅ FAQs:
Q1. Why is silver (XAG/USD) rising now?
Silver is gaining due to geopolitical uncertainties, tariff risks, and its dual role as both a safe-haven asset and industrial metal.
Q2. How do US tariffs impact silver prices?
Tariffs can disrupt global trade, spark inflation fears, and push investors toward hedging tools like silver and gold, lifting prices.
Q3. What role do Fed minutes play in silver trading?
The Fed's monetary stance affects interest rate expectations. A dovish tone supports silver, while hawkish signals may lead to short-term pullbacks.
Q4. Is this a good time to buy silver?
While prices are near resistance, long-term investors may consider staggered entry points. A breakout above $32.50 would confirm further upside potential.
Q5. Can silver outperform gold in 2025?
Yes. Due to its broader industrial use and increasing demand from green technologies, silver has the potential to outperform gold in certain market conditions.
Published : On 7th July
Published : Pankaj
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