Silver price prediction: Market watches for a potential breakout that could mark a four-day high
Silver surges above $31.40, forming a bullish engulfing pattern.
Silver price started March on a strong note, surging above the 50-day EMA at $31.40 and forming a bullish engulfing pattern on the daily chart.
The metal has since entered a consolidation phase, trading between $31.75 and $31.50 in today’s European session. As silver approaches the critical resistance zone at $31.90, the market is watching for a potential breakout that could mark a four-day-high.
Technically, silver’s ability to hold above the 50-day EMA reinforced its bullish momentum, while the daily and 4-hour RSI shifting into positive territory suggests increasing upward potential.
Silver price dynamics (Feb 2025 - March 2025). Source: TradingView.
On the fundamental front, geopolitical tensions and economic concerns have influenced risk sentiment. The recent clash between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy, along with upcoming tariffs on Mexico, Canada, and China, have added uncertainty to global markets. Additionally, Business activity in the manufacturing sector showed mixed signals in February, with S&P Global data reflecting an improvement while the ISM index declined but remained in expansion territory. This divergence has added to market uncertainty, influencing silver’s consolidation as investors assess broader economic conditions and their implications for industrial demand.
Silver price outlook: Stronger U.S. dollar could cap silver’s upside
With these factors in play, silver’s RSI positioning aligns with a bullish sentiment. The metal’s ability to sustain gains above the $31.40 support suggests strong accumulation, and if buyers push past $31.90, silver could extend its gains toward fresh highs. However, a failure to clear resistance may trigger a pullback toward the 50-day EMA at $31.40, which now serves as a key near-term support level.
Despite the current bullish outlook, a contrarian view considers potential headwinds. If risk appetite improves or the U.S. dollar strengthens due to shifting rate expectations, silver’s upside momentum could face pressure. Traders will be watching upcoming economic data and Federal Reserve policy cues for further direction.
For now, silver’s trajectory hinges on the $31.40 support and $31.90 resistance. A break above could open the door to a sustained rally, while failure to breach this zone may lead to consolidation or a retracement in the short term.
Silver dropped 5% last week as sellers pushed it to a three-week low of $30.80. The price rebounded but faced resistance at $31.40, where the 50-day EMA halted further gains.
