Silver Price Forecast: $32 Break Sparks Bearish Move to $31.36?

Silver fell more than 1.5% today, XAG/USD is near $32.00 as the US dollar strengthens. The Dollar Index (DXY) rose 0.4% today, making silver more expensive for non-US buyers and pulling prices lower.

This is silver’s lowest level in over a week and confirms the broader pullback from April highs when geopolitical tensions and recession fears boosted safe-haven demand. But with optimism on trade deals – especially US deals with India, South Korea and Japan – risk appetite is coming back and weighing on silver.

Chinese markets are closed until May 5 for Labour Day, reducing global liquidity and potentially increasing short-term volatility in metals.

Silver (XAG/USD) Technical Breakdown: Key Levels to Watch

The technicals are bearish. Silver is inside a descending channel and the 50 hour EMA is capping at $32.63. Sellers are defending the resistance zones strongly.

Price has broken the $32.22 support and is now approaching the next level at $31.85. The MACD is deeply negative and no bullish momentum reversal yet. If $31.85 fails, the next targets are $31.64 and $31.36.

Trade Setup:

This is a trend following short trade.

• Entry: Near $32.20 (if rejected again)

• Target 1: $31.64

• Target 2: $31.36

• Stop-Loss: Above $32.45

The trend is down until silver breaks the channel and reclaims the 50 EMA. Until then, sellers are in control.

Eyes on the Fed and US Data

Next week, we have the US non-farm payrolls report, a key input for the Fed’s next move. The US economy contracted in Q1 2025 and markets are pricing in a full percentage point of rate cuts by year-end.

This macro backdrop may favour silver in the long term but in the short term, dollar strength and trade optimism may keep the pressure on.

In Summary:

• Silver is near $32.00, down 1.5%* Down below $31.85

• Fed and NFP will decide For now, silver is correcting and the charts say it’s not over yet.