Silver Price Outlook: XAG/USD Slips Below $32.50 as US Treasury Yields Rebound

Silver (XAG/USD) is trading on the back foot in Friday’s session, slipping below the $32.50 level as a rebound in U.S. Treasury yields weighs on precious metals. The retreat follows a failed attempt to sustain gains above $33.00 earlier in the week, as investors reassess their risk appetite amid shifting macroeconomic conditions.

The recent uptick in U.S. yields, particularly on the 10-year benchmark, has renewed demand for the U.S. dollar and dampened the appeal of non-yielding assets like silver. Hawkish commentary from Federal Reserve officials, along with stronger-than-expected inflation data, has added fuel to the bond market’s move, challenging bullish momentum in XAG/USD.

Despite the pullback, silver continues to hold above key short-term support around the $32.00 level. A firm break below this zone could open the door toward $31.50 and potentially $30.80 in the near term. On the upside, renewed bullish pressure would need to push prices decisively above $33.00 to confirm a continuation of the broader uptrend.

Traders will be watching upcoming U.S. economic data closely for further clues on interest rate policy and its implications for precious metals.

Silver (XAG/USD) Technical Outlook: Support at $32 Holds Firm After Rally Stalls Near $34

Silver (XAG/USD) experienced a strong bullish run this week, reaching as high as the $34.00 mark before encountering resistance. The rally triggered some profit-taking, leading to a moderate correction that pulled prices back toward the $32.00 support zone.

Despite the retracement, the $32.00 level is showing resilience, holding firm against ongoing bearish pressure. The presence of multiple consolidating candlesticks—particularly those with long lower wicks—suggests that bullish sentiment remains intact. These lower shadows indicate that buyers are actively defending the support level, pushing back each time the price dips below this threshold.

Overall, as long as silver maintains support above $32.00, the broader bullish outlook remains intact, and a renewed push toward the $34.00 level cannot be ruled out in the near term.

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