Silver (XAG) Forecast: Silver Bounces, But Can It Clear $36.30 Resistance?
LONDON (June 30) Silver prices are ticking higher as traders react to another successful defense of the $35.40–$34.87 support zone, reinforcing its role as a critical line in the sand for near-term positioning. The metal is now preparing for a test of the minor pivot at $36.30, with market participants weighing whether enough momentum is building to challenge resistance levels that could trigger a fresh upside breakout.
Can Silver Clear $36.30 and Trigger a Push Toward $37?
Daily Silver (XAG/USD)
The next key inflection for silver traders is the minor pivot at $36.30. A clean move above this level could accelerate short-covering and speculative buying, targeting the minor top at $36.84 and the primary top at $37.32. These levels remain in clear focus for momentum traders seeking confirmation of a push higher in line with the broader uptrend.
Failure to clear $36.30 could leave the market vulnerable to another pullback toward the $35.40–$34.87 zone. This range has absorbed selling pressure in prior tests, but a decisive break lower would shift focus toward the 50-day moving average at $34.20, a potential area where buyers may step in to defend the longer-term uptrend.
Fed Rate Cut Bets and Dollar Weakness Supporting the Bull Case
Silver’s upward bias remains underpinned by a broadly weaker dollar and increasing bets on a September Federal Reserve rate cut, factors that continue to support precious metals as traders hedge currency risk. With Treasury yields under pressure and political noise around spending plans adding weight to the rate-cut narrative, silver is finding tailwinds that complement its technical positioning.
Industrial Demand and Geopolitical Factors Adding Layers
Industrial demand for silver continues to act as a stabilizing factor for dips, particularly with ongoing global efforts in solar and electronics sectors providing an underlying bid. Meanwhile, geopolitical developments, including trade optimism and political tensions, add an additional layer of support as market participants seek hard assets to balance broader risk exposure.
Short-Term Silver Outlook: Watch the $36.30 Test
Near-term, the focus for silver traders will be the $36.30 pivot. A sustained break above this level could open a clean pathway to challenge the $36.84 and $37.32 highs, aligning technical momentum with supportive external factors such as dollar softness and Fed rate cut expectations.
If silver fails to clear $36.30, look for another test of the $35.40–$34.87 support. A breakdown below that could shift the discussion toward the 50-day moving average near $34.20, which may provide another buying opportunity within the broader uptrend.
FXEmpire
