Silver (XAG/USD) remains in a tight range as traders await a decisive move beyond the $32.55 resistance level, a key barrier that could determine the metal’s next leg higher. The bullish momentum in silver has been supported by weaker US dollar sentiment, rising demand for safe-haven assets, and expectations surrounding Federal Reserve policy.
The recent rally in silver has been fueled by growing concerns over inflation and global economic uncertainty, prompting investors to shift toward precious metals. Additionally, industrial demand for silver remains strong, particularly from the renewable energy and electronics sectors, providing further support for prices.
Silver US Dollar per Ounce 1-D Chart as of February 18th, 2025 (Source: TradingView)
Meanwhile, the US dollar’s mixed performance has played a critical role in silver’s price action. A softer greenback has made silver more attractive to international buyers, while US Treasury yields have fluctuated as markets digest the Fed’s policy outlook. Any dovish signals from the Fed could push silver above the $32.55 level, opening the door for further upside.
Despite the bullish setup, silver faces challenges in sustaining higher levels. A stronger-than-expected US economic report or hawkish comments from Fed officials could weigh on XAG/USD, triggering a pullback toward key support zones. Traders are closely watching upcoming macroeconomic data, particularly inflation and labor market trends, for clues on the next move.
Technical indicators suggest that a clear breakout above $32.55 could pave the way for silver to test higher resistance levels. However, failure to breach this zone may lead to profit-taking and short-term volatility, keeping the metal within its current range.
For now, silver traders remain cautious but optimistic, with market sentiment hinging on economic data and central bank guidance. If bullish momentum holds and risk appetite increases, XAG/USD could see fresh highs, reinforcing its position as a key asset in times of uncertainty.
