Silver price prediction: XAG/USD eyes $39.54 July high amid Powell dovish remarks

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Sholanke Dele

25.08.2025

Silver price prediction: XAG/USD eyes $39.54 July high amid Powell dovish remarks — Silver holds bullish momentum after a three-day surge

Silver has steadied near $38.8 in the European session on Monday, August 25, after a powerful three-day rally last week lifted the metal to a four-week high at $39.05. The surge in momentum was sparked by Federal Reserve Chair Jerome Powell’s comments at Jackson Hole, where he pointed to rising downside risks in the labor market and hinted at a September rate cut.

- Silver volume surge on Friday signals strong participation behind rally

- Silver daily RSI at 60 signals bullish momentum as U.S. dollar and yields weaken.

- $39.54 July high stands as next bullish target for Silver bulls

The rally began from a 12-day low at $37.0, where the 50-day exponential moving average provided support, and extended across three consecutive days into Friday. Importantly, the final leg on Friday came on the strongest volume in more than a week, exceeding the turnover of the prior five days. This strong participation shifted last week’s trajectory from weakness to gains and secured a bullish outlook for the month of August.

Silver price trajectory (May - August 2025)

Powell’s remarks triggered a broad repricing across financial markets. The U.S. dollar slumped to a three-week low as expectations for lower interest rates reduced the appeal of U.S.-based assets. Treasury yields fell sharply, with the benchmark 10-year note slipping nearly seven basis points to 4.261%, flattening the yield curve. The prospect of easing policy and softer yields redirected flows toward safe-haven metals, helping silver lead the way higher in the commodity space.

XAG/USD bullish bias intact as yields and dollar weaken

From a technical perspective, silver has reasserted its bullish momentum, reclaiming territory above key averages and pressing toward July highs. The daily relative strength index has climbed to 60, marking its highest reading of the month and confirming improved momentum. But since the start of the new week, price action has been muted in a sideways consolidation, suggesting that traders are pausing after the sharp rally.

The next upside target is the July high at $39.54, which sits above Friday’s peak and offers a natural test for bulls if momentum continues. On the downside, $39 has become an important pivot level, and a sustained hold above it would strengthen the bullish outlook. Immediate support is layered at $36.7, where buyers are likely to defend against deeper pullbacks.

Silver’s path remains constructive so long as fundamental conditions support lower yields and a softer dollar. The combination of dovish policy expectations and renewed safe-haven demand positions Silver for further gains, provided the $39 handle is reclaimed in coming sessions

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