The broader macroeconomic environment remains favorable for precious metals. Treasury yields are declining, with the 10-year yield dipping to 4.168% and the 2-year yield falling to 3.931%, reducing the opportunity cost of holding silver. Meanwhile, the U.S. dollar index has dropped to 106.78, making silver more attractive to international buyers.
However, silver’s price action remains more dependent on industrial demand, which is still clouded by uncertainty surrounding global trade tensions. New tariffs imposed by the U.S. on Canada, Mexico, and China have raised concerns about economic slowdowns, which could weigh on silver’s industrial use.
Silver Market Forecast: Cautious Optimism
Silver’s immediate outlook depends on whether it can hold $31.81 and gain momentum toward $32.53. If gold continues its strong uptrend, silver could follow suit, but traders will be wary of any retracement back toward the 50-day moving average at $31.02.
For now, silver remains in a neutral-to-bullish posture, with upside potential if key technical levels hold. Traders should monitor macroeconomic developments, particularly any signals of Federal Reserve rate cuts, which could further support silver prices.
