Silver Price Forecast: Safe-Haven Flows Push XAG Toward $85—Is $88 Next?
Silver climbed toward $84.35 this week, extending a strong multi-session rally as global markets shifted sharply into defensive assets.
Quick overview
- Silver prices rose to $84.35 this week, driven by a shift towards defensive assets amid geopolitical tensions.
- The US dollar weakened due to uncertainty surrounding the Federal Reserve, further supporting silver's appeal as a non-yielding asset.
- Silver's technical outlook remains bullish, with a potential breakout above $85.66 targeting $88.73.
- Investors are closely monitoring upcoming US inflation data, which could influence silver's trajectory.
Silver climbed toward $84.35 this week, extending a strong multi-session rally as global markets shifted sharply into defensive assets. The move mirrors the broader flight to safety seen across metals, with investors reacting to escalating geopolitical tension in the Middle East and renewed uncertainty in Arctic security policy.
Reports of rising unrest in Iran and the prospect of military response from major Western powers have increased the appeal of hard assets. Meanwhile, strategic military repositioning by the UK and Germany around Greenland has added a fresh layer of geopolitical risk.
These developments have pushed investors toward defensive metals, not only gold, but high-beta havens like silver, which tends to outperform during periods of heightened volatility.
Dollar Weakens as Fed Uncertainty Builds
The US dollar cooled this week following a widening investigation into Federal Reserve Chair Jerome Powell’s testimony on renovation spending. Questions surrounding central bank independence weighed on the greenback, adding fuel to silver’s rise.
[[XAG/USD-graph]]
At the same time, soft US labor data and firmer expectations of upcoming rate cuts have boosted the case for non-yielding assets. As Treasury yields slip, silver becomes more attractive to traders seeking a hedge against policy uncertainty and slowing economic momentum.
Economists are now closely watching Tuesday’s US inflation report, with core CPI expected at 0.3% MoM. A print in line with expectations would reinforce dovish policy bets—another positive factor for silver.
Silver Technical Outlook: Rally Stalls at $85.66 Resistance
Silver is trading near $84.35 after a sharp advance that pushed directly into the $85.66 resistance zone. Small-bodied candles now appearing at this level signal early hesitation following the impulsive move.
The broader structure stays bullish, supported by:
- An ascending trendline from late December
- A clean sequence of higher lows
- Price holding above the 50-EMA and 100-EMA, both upward-sloping
Silver recently broke above $82.64, now acting as near-term support. A deeper pullback could retest $79.13, where buyers consistently stepped in last week.
The RSI at 76 shows overextended conditions, hinting at a possible cooldown before the next push higher.
A clean break above $85.66 would open the door toward $88.73, a level aligned with prior reaction highs and the next major resistance on the chart.
Silver (XAG/USD) Trade Setup to Watch
A constructive setup favors buying only on a confirmed breakout above $85.66, with upside targets at $88.73.
With safe-haven flows rising and macro uncertainty deepening, silver’s technical structure suggests the metal may not be done climbing—and a decisive break above resistance could accelerate the next bullish leg.
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