Silver Price Forecast: Key Insights and Market Dynamics

Published: July 09, 2025

Author: James Hyerczyk

Market Overview

Silver prices have shown resilience, holding above the critical support level of $36.30 despite recent declines. As of the latest trading session, silver (XAG/USD) is priced at $36.37, reflecting a decrease of 1.05%. Traders are closely monitoring signals from the Federal Reserve and ongoing tariff developments that could influence market dynamics.

Current Economic Indicators

• U.S. 10-Year Treasury Yields: Currently at 4.407%, these yields exert pressure on non-yielding assets like silver, diminishing its appeal as a safe-haven investment.
• U.S. Dollar Index: The dollar index has increased by 0.1%, driven by safe-haven demand amid escalating tariff threats from the U.S. government.

Technical Analysis

Silver's ability to maintain its position above $36.30 indicates that buyers are actively defending this level. However, the market is awaiting a clear catalyst to push prices towards the resistance range of $37.23 to $37.32. A decisive breakout above this range could signal renewed bullish momentum.

Conversely, if silver falls below $36.30, it may face increased selling pressure, potentially testing lower support levels around $35.40 to $34.87, with significant support at the 50-day moving average of $34.70.

Market Sentiment and Outlook

The outlook for silver remains cautious due to several factors:

• Higher U.S. Treasury yields are limiting the attractiveness of precious metals.
• The strength of the U.S. dollar, coupled with tariff uncertainties, is constraining silver's upside potential.

Traders are advised to prepare for volatile price action as external factors, including Federal Reserve communications and tariff developments, continue to shape market sentiment.

Conclusion

While silver is currently holding above critical support levels, the market's direction will largely depend on forthcoming economic signals from the Federal Reserve and the impact of tariff policies. A break above $37.32 could indicate a bullish shift, while a drop below $36.30 may lead to further declines.