Silver price forecast: Bulls target 4-month high at $33.40 ahead of U.S. CPI data
Silver price surges past $33 as bullish momentum holds above key support.
Silver prices have shown strong bullish momentum after rebounding from key support levels, but geopolitical and economic factors could influence its next move.
Yesterday, silver found support at $31.90 before surging over 3.6%, breaking above the two-week high at $32.75. This breakout has turned $32.75 into a critical support level, which cushioned price decline in the Asian sessions today.
From this support base, silver has extended gains by more than 1% in the European session, surpassing the psychological level of $33.00 to mark a fresh two-week high. Despite the upward momentum, RSI on both the four-hour and daily timeframes remains in bullish territory but has yet to reach overbought conditions, suggesting room for further upside.
Silver price dynamics (Feb 2025 - March 2025). Source: TradingView.
U.S. CPI release and geopolitics could dampen Silver bullish outlook
Silver traders are closely monitoring today’s U.S. Consumer Price Index (CPI) release, which could provide fresh cues on the Federal Reserve’s interest rate policy. A lower-than-expected inflation reading may increase expectations of rate cuts, weakening the U.S. dollar and supporting silver prices. Conversely, stronger inflation could delay rate cuts, potentially capping silver’s gains.
Additionally, geopolitical developments may weigh on silver’s trajectory. Reports from Saudi Arabia indicate that Ukraine is prepared to accept a ceasefire proposal, with U.S. officials now tasked with negotiating an agreement with Russia. Reduced geopolitical tensions could dampen safe-haven demand for silver, limiting its upside potential.
Silver’s short-term outlook remains bullish, with price action holding above key support and technical indicators allowing for further gains. As today’s CPI data and geopolitical news could introduce volatility, the $33.40 level remains the next target. If support at $32.75 holds, the bullish momentum is likely to persist; otherwise, a break below this level may signal a short-term reversal.
Silver dropped 2.66% early in the week as selling pressure persisted. The rebound from $31.80 was driven by key technical support at the Fibonacci 50% retracement and the 200 EMA.
