Silver price forecast: XAG/USD rises 1.22% as buyers defend $31.80 support
Silver rebounds from $31.80 support after sharp early-week decline.
Silver price movement started the week on a bearish note, falling 1.76% on Monday to a three-day low.
The downside pressure extended into Tuesday’s Asian session, with prices declining by another 0.9% to a four-day low of $31.80. However, buyers swiftly stepped in at this level, triggering a sharp recovery.
The rebound from $31.80 was technically significant, as this level coincided with the Fibonacci 50% retracement and the 200 EMA on the 4-hour chart. This confluence of support provided a solid base for silver’s recovery, pushing prices up to $32.50 during the European session, translating to a 1.22% increase during the day.
The shift in price action has had a notable impact on technical indicators. The 4-hour RSI has moved into bullish territory, now aligning with the daily RSI, which has maintained a bullish bias.
Silver price dynamics (Nov 2024 - March 2025). Source: TradingView.
This shift suggests strengthening momentum in silver’s favor, but key resistance remains at $32.75. This level previously capped last week’s upside and could present a hurdle to further gains.
Upcoming U.S. CPI report could shape silver price outlook
Fundamentally, China’s latest inflation data could play a role in silver’s trajectory. The latest inflation data showed a YoY decline of -0.7% for February, weaker than the expected -0.5%. This has fueled worries over slowing economic growth, which may impact industrial demand for silver. Meanwhile, traders are closely monitoring upcoming U.S. economic data, particularly Tuesday’s JOLTs Job Openings report and Wednesday’s Consumer Price Index (CPI) release. A stronger-than-expected U.S. inflation report could temper expectations of Federal Reserve rate cuts, potentially limiting silver’s upside.
In the near term, silver’s ability to break above $32.75 is crucial. A sustained move past this resistance could open the door for further gains. However, failure to clear this level may lead to consolidation within the $31.90–$32.75 range, as buyers and sellers establish near-term control.
Silver faced resistance at $32.75 as investors weighed U.S. trade policy risks under Trump. The price pulled back to $32.45 before stabilizing near $32.55.
