Silver Price Forecast: Bulls Eye $39 Breakout as Inflation Data Nears

Silver steadies near $38.77 as traders eye U.S. inflation data. A breakout above $39.06 could target $39.97, while support rests at $38.17.

Written by: Arslan Butt • Thursday, August 28, 2025 • 1 min read

• Last updated: Thursday, August 28, 2025

Quick overview

Silver prices remained stable at $38.77 as traders awaited the US PCE inflation report, with expectations of a 2.6% annual increase.
The metal's industrial demand, particularly in solar panels and electric vehicles, provides structural support against price volatility.
Silver is testing resistance at $39.06, with a bullish outlook if it breaks above this level, potentially reaching $39.97.
Traders should monitor the trendline at $38.17, as a failure to hold could lead to a pullback.

Silver held steady on Wednesday at $38.77 as traders waited for the US Personal Consumption Expenditures (PCE) inflation report. Expectations are for a 2.6% annual increase and 2.9% core. A softer print could mean a September Fed rate cut and more demand for non-yielding assets like silver.

[[XAG/USD-graph]]

Beyond its safe-haven appeal, silver’s industrial demand is a strong undercurrent. Use in solar panels, electric vehicles and energy storage is providing structural support, cushioning price volatility.

Against geopolitical uncertainty and questions about the Fed’s independence, silver’s dual role as hedge and industrial input makes it a good place to put flows.

Silver (XAG/USD) Levels to Watch

On the 2-hour chart, silver is testing resistance at $39.06 after bouncing from $37.55. Price has reclaimed the 50-SMA at $38.59 and is looking short-term bullish.

Silver Price Chart - Source: Tradingview — Silver Price Chart – Source: Tradingview

RSI at 59 is improving but not overbought.
MACD positive crossover is building momentum.
Candlestick wicks at $38.17 show strong dip buying.

A break above $39.06 opens up $39.52 and $39.97. Failure here risks a pullback to $38.17 or lower to $37.55.

Silver (XAG/USD) Trade Setup

For traders, silver is looking bullish. A break above $39.06 could spark a move to $39.97 and conservatives may wait for a close above $39.50. If sellers take control, the trendline at $38.17 will be key to holding the uptrend.

In simple terms: silver is coiling for a break and with inflation data due, the next move could be to $40 and beyond.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.