Silver (XAG/USD) Eyes $32.85 as Bulls Bet on Demand, Rate Cuts

Silver (XAG/USD) is setting up for outperformance vs gold as analysts point to a rising gold-to-silver ratio and growing industrial demand. According to the World Silver Survey 2025 by the Silver Institute, silver is undervalued vs gold so it’s a buy.

With silver’s heavy use in electronics and solar energy, any rebound in global manufacturing will amplify upside. A softening economic outlook is a risk but expected US rate cuts will boost investment demand for silver as a safe-haven.

Key Points:

• Gold-to-silver ratio is high.

• Industrial demand is rising especially in clean energy.

• Rate cut expectations will drive silver inflows.

Market Moves and Global Trade Calm Ease Fears

Calmer trade tensions between the US and China are easing recession fears, softening the gold rush and giving silver some room to breathe. Tim Waterer, chief market analyst at KCM Trade, notes that financial markets are reacting positively to a trade truce and that’s helping commodities stabilise.

The US dollar’s 0.3% rise has made precious metals more expensive for overseas buyers but silver’s dual role as an industrial and investment asset is helping to cushion the downside.

Upcoming economic reports (US Personal Consumption Expenditures and non-farm payrolls) will be key to the Fed’s next move. A dovish tilt will inject life into silver markets as lower rates weaken the dollar and boost metal prices.

Silver Technicals: Levels to Watch

Silver is at $32.85 after testing lower channel support at $32.56. Price is hesitating with the 50 EMA ($33.08) now the key pivot. MACD is bearish so sellers are in control short term unless bulls get back above $33.10 quickly.

For new traders this is a textbook “support test” setup: price is testing major trendline support within an otherwise healthy uptrend.

Current Trade:

• Buy breakout: Above $33.10

• Targets: $33.68 and $34.07

• Support to watch: $32.56

• Stop-loss: Below $32.10

If bulls get back above $33.10 they can quickly test higher levels. But if they can’t hold $32.56 they may correct to $32.10 or $31.57. Be patient and manage risk.