Silver prices decreased by 1.6%, reaching a weekly low of $32.66, influenced by a strong US Dollar and higher US Treasury yields. The price stabilised after buyers maintained support at $32.50, with key resistance at $33.10.
At present, XAG/USD trades at $33.03, marking its largest decline since February 25, 2025. The next crucial support is found at $31.91, which corresponds to the 50-day Simple Moving Average, while a breach above $33.10 could lead to a recovery towards $33.50.
Factors Influencing Silver Prices
Demand for silver is driven by its industrial use, safe-haven status, and movements in gold prices. Fluctuations in the US, Chinese, and Indian economies can influence pricing dynamics significantly.
The past week has seen silver prices tumble, largely due to a strengthened US Dollar and Treasury yields that continue their steady climb. The dip to $32.66 marked a fresh weekly low, though a rebound soon followed as buying pressure emerged at $32.50. That level appears to be holding firm, providing a temporary floor, with resistance now forming at $33.10.
Currently, the metal is exchanging hands around $33.03, experiencing its steepest single-day drop in nearly four months. The next level of stability sits lower at $31.91, aligning with the 50-day Simple Moving Average—an area that tends to attract technical buyers. A move higher, if resistance at $33.10 gives way, may open the door for a push up to $33.50.
Silver remains in demand for multiple reasons. Industrial usage plays a major role in determining its price, as the metal is widely utilised across electronics, solar panels, and manufacturing. It is also sought after when inflation or geopolitical risks rise, drawing in those looking for a safe-haven asset. Additionally, silver often moves in tandem with gold, meaning any strong momentum in the gold market can spill over.
Macroeconomic Impacts On Silver
Beyond these primary influences, economies such as the US, China, and India shape future movements. Growth trends, inflation reports, and central bank decisions in these regions can introduce fresh volatility.
From our perspective, those involved in derivatives markets should pay close attention to the upcoming direction of Treasury yields and currency strength—both of which have been instrumental in shaping recent price action. A continued rise in yields may weigh further on silver, while any slowdown could create room for a rebound. Looking at support near $31.91, should prices approach that level, it will warrant close observation to see if buyers step in once more.
With industrial demand providing long-term support, short-term pricing remains reactive to macroeconomic developments. Watching for signals from major economies, particularly in manufacturing data and inflation figures, will offer a clearer picture of where price movements may be headed next.
