Silver Price Forecast: Bulls Defend $33.50—Is $34.16 Breakout Next?

Silver (XAG/USD) is at $33.5155, up 0.02% over the last 24 hours, showing some resilience despite the mixed global backdrop. Trump has delayed imposing tariffs on the EU until July 9, easing the market and giving metals a breather. This has pulled silver back from Friday’s highs above $33.69 but the overall technicals are still bullish.

Trump’s delay has given the market some relief especially after the dollar index (.DXY) fell to a near one month low. A weaker dollar often lifts dollar denominated commodities like silver making them more attractive to global buyers. But silver’s price action still reflects caution on the broader economic front.

Geopolitics, Derivatives and Mixed Sentiment

Silver’s safe haven appeal got a small boost from the escalating geopolitical tensions. Russia’s record overnight attack on Ukraine – 367 drones and missiles on cities – has increased demand for defensive assets like silver. But ETF data shows some hesitation. The iShares Silver Trust, the largest silver ETF, saw a small dip in holdings, investors are still cautious.

Meanwhile the 2 hour chart shows a rising trendline with higher highs and higher lows, a constructive setup. Price is consolidating just below $33.699 with small bodied candles indicating indecision. A break above this level could open up $34.166 and potentially $34.948 if momentum expands.

Key chart points:

• Rising trendline support at $33.20 backed by the 50 EMA at $33.139.

• MACD is bullish, widening histogram bars and approaching a crossover.

• Resistance at $33.699 and $34.166; support at $33.347 and $33.029.

Watch the Breakout – $34.166 Is the Next Big Test

For traders silver’s setup is to wait. A clear break above $33.699 with a bullish engulfing or three white soldiers pattern could be the signal to $34.166 or $34.948. Failure to hold $33.347 could be a pullback to $33.029 or $32.734.MACD is bullish and higher lows, silver can still go up if the market allows.