Silver Price Forecasts: XAG/USD edges up, nearing $58 as the US Dollar takes a breather

Silver (XAG/USD) has bounced up from seven-month lows below $56.00 on Friday, to reach session highs at $57.80 at the moment of writing. The precious metal is trimming some losses, favoured by a mild US Dollar (USD) pullback, but remains on track for a 10% weekly decline, hammered by broad USD strength.

Recent US macroeconomic figures highlight a resilient economy and an improving labour market, while the AI boom is funnelling massive investment flows into the country. This has revived the theory of US economic exceptionalism and is boosting the Greenback against its main peers.

US inflation, on the other hand, remains out of control, despite the recent decline in oil prices. Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s inflation gauge of choice, accelerated to a 4.1% year-on-year growth in May, its highest level in more than three years, endorsing the central bank’s hawkish stance. In this context, investors’ repricing of interest rate hikes in the coming months is fuelling the US Dollar’s rally and crushing precious metals.

XAG/USD trades at $57.91, after reaching heavily oversold levels with the bearish near-term bias intact, as the Relative Strength Index (14) remains below 40, on the weak side. At the same time, the Moving Average Convergence Divergence (MACD) ticks modestly into positive territory, hinting at only a tentative attempt to stabilize rather than a clear bullish reversal.

Bears are being contained above $55.60 so far, although upside attempts remain limited. Further down, the October and mid-November 2025 lows, in the area between $54.85 and $54.40, might provide some support ahead of the $50.00 psychological level.

On the topside, initial resistance is seen at the $59.00 area (Thursday’s high), followed by the June 11 low, at $61.50, and the weekly high, in the $67.15 area.