Silver Eyes $37.12 as Fed Decision Looms and Geopolitical Tensions Rise

Silver (XAG/USD) is sitting at $36.45 and poised to break out as market sentiment remains tied to rising geopolitical tensions and upcoming.

Written by: Arslan Butt • Tuesday, June 17, 2025 • 2 min read

• Last updated: Tuesday, June 17, 2025

Quick overview

Silver (XAG/USD) is currently at $36.45, with potential for a breakout due to rising geopolitical tensions and investor interest in precious metals.
The Federal Reserve's upcoming policy decision is a key factor, as traders are closely monitoring Jerome Powell's guidance on interest rates.
Technically, silver is positioned well for a breakout above the $36.45-$36.65 range, with resistance levels at $36.89 and $37.12.
Support levels are noted at $36.27 and $36.02, with a drop below $36.02 potentially reversing the bullish outlook.

Silver (XAG/USD) is sitting at $36.45 and poised to break out as market sentiment remains tied to rising geopolitical tensions and upcoming Fed cues. While international military action is dominating the headlines, investors are getting back into precious metals as a hedge.

Gold has already shown this, stuck at $3,400. KCM Trade’s Tim Waterer says, “Markets are bouncing between risk-on and risk-off and gold is stuck in the middle.” The escalation, which includes high level evacuations and strikes on critical infrastructure, has caused a broader flight to safety and silver is riding the coattails.

Silver’s dual role as industrial and safe-haven asset makes it responsive to these events. With momentum building, the move to $36.65 could unlock more upside.

Fed in Focus: Will Powell Shift Tone?

Beyond the global headlines, the next big catalyst is the Federal Reserve’s policy decision. The two day meeting ends tomorrow and while the Fed is expected to keep rates unchanged, traders are watching Jerome Powell’s tone on forward guidance.

Markets have priced in two rate cuts by the end of the year. Any deviation from this could quickly change gold and silver’s short term direction. If Powell is dovish it could further weaken the dollar and support a silver and commodity rally. For now metals are consolidating but ready to break out, pending macro and Fed cues.

Silver Technicals: $36.89 and $37.12 in Sight

Technically silver is looking good. After consolidating in a tight range XAG/USD is trying to break out above the $36.45-$36.65 zone. A close above this range could be a quick path to $36.89 and $37.12, previous highs that are the next resistance levels.

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

Supporting the move:

Price above the 50-EMA at $36.32
MACD crossover into positive
Trendline from early June lows is intact

Support at $36.27 and $36.02. A drop below the latter would negate the bullish view and expose silver to $35.73. For now silver bulls are in control but the next 24 hours will be determined by what the Fed says and how geopolitical risks play out.

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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.