Silver price prediction: XAG/USD rising daily volumes confirm sustained uptrend

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Silver price prediction

Highlights

- Silver rally continues amid increasing safe-haven inflows and volume trend

- XAG/USD rebound from intraday low shows buyers defending bullish trend structure.

- U.S. jobless claims and ISM PMI expected to influence silver rally.

By midweek, silver touched a new 14-year high of $41.49, even as the dollar showed strength earlier in the week. That divergence underscores the resilience of silver demand, which has been supported by its dual identity as both a safe haven and an industrial metal. The early September sessions have followed a familiar intraday rhythm: initial profit taking during Asian hours followed by strong recoveries through European and North American sessions. This structure signals that global demand remains intact, as dips continue to attract buyers.

Silver price dynamics (July - Sept 2025). Source: Tradingview

Thursday’s trading added a unique twist to this pattern. During Asian hours, profit taking drove silver below the previous day’s low of $40.65, reaching an intraday trough of $40.52. However, technical support came into play quickly, as the 20 EMA on the four-hour chart provided a cushion. The rebound that followed lifted silver back toward $40.90 by the European session, limiting the downside damage and keeping the broader uptrend intact.

Jobless claims and ISM PMI releases to influence silver outlook

From a technical standpoint, the persistent long participation and steady volume growth indicate that the bullish channel is intact. If momentum extends further, silver could retest and potentially break above the $41.45 resistance level, which would mark another significant milestone in its advance. The ability of the metal to recover intraday declines suggests that buyers are in firm control for now.

Macro conditions could add another layer of support. The dollar weakened yesterday after its early week strength, and silver typically benefits from a softer greenback. Today’s U.S. economic releases, particularly unemployment claims and the ISM services PMI, hold the potential to influence the dollar’s trajectory. A higher-than-forecast jobless claims number or a weaker services PMI would weigh on the currency and indirectly strengthen silver. These events provide a potential fundamental catalyst for silver to extend its rally.

Overall, silver’s ability to hold gains, attract consistent inflows, and rebound from intraday weakness confirms the strength of its current trend. Unless data surprises strongly in favour of the dollar, the path of least resistance appears to be higher, with investors likely targeting a sustained break above the $41.45 level in the sessions ahead.

Silver trades near $38.65 after an early rebound, with U.S. data set to shape direction. Silver price outlook depends on holding the 100 EMA support on 1hr chart.

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