Silver price forecast: U.S. PPI in focus as XAG/USD retreats from 4-week high
Silver retreats from $33.30 after strong rally
Silver price bullish momentum recently met resistance near February’s high of $33.40, with price action now retreating after reaching a four-week high of $33.30.
Following this peak, silver declined through the Asian and European sessions today, hitting a low of $32.92 before recovering mildly toward the $33.00 psychological level.
The decline follows softer-than-expected U.S. inflation data, which initially lifted silver due to speculation of potential Fed rate cuts. However, investor skepticism remains, as concerns over aggressive U.S. tariffs and their potential inflationary effects have kept U.S. Treasury yields elevated. Higher yields typically weigh on silver by increasing the opportunity cost of holding the non-yielding metal.
XAG/USD technical outlook: Silver RSI remains bullish despite intraday pullback
Silver price dynamics (Feb 2025 - March 2025). Source: TradingView
Despite today’s pullback, silver maintains a strong bullish trend in 2025, with a 6% gain month-to-date in March. Technical indicators continue to support the upside bias, with both the 4-hour and daily RSI remaining in bullish territory. The key near-term support to watch is $32.75—if this level holds, silver could rebound toward fresh highs. A decisive move above February’s $33.40 high would mark a five-month peak and strengthen bullish momentum.
Conversely, failure to hold $32.75 could open the door for a deeper correction, though the broader uptrend remains intact. Traders now look ahead to upcoming U.S. Producer Price Index (PPI) data for short-term cues on inflation expectations and potential rate policy shifts, which could further influence silver’s price direction.
Silver surged over 3.6% after finding support at $31.90, driven by geopolitical and economic factors. Technically, it broke above $32.75, which has now turned into a key support level.
