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Silver Price Forecast: XAG/USD Gains 3.5% This Week, Eyes $39 Breakout

Silver Price Forecast: Silver prices jump over 3.5% this week as US Dollar slides and hopes of a Fed rate cut grow. Will Silver hit $39 soon? Here’s the full technical analysis.


Silver Price Forecast – XAG/USD Shines with Strong Weekly Gains

Silver had a power-packed week, climbing for four straight sessions and ending above \$38 per troy ounce. Prices even came close to touching \$38.50, their highest point of the week. The rally came as the US Dollar lost strength and traders grew confident that the Federal Reserve might cut interest rates in September.

By the end of the week, XAG/USD had gained 0.24% for the day and over 3.5% across the week – a big win for Silver bulls.


Why Silver is Rising Right Now

Two main reasons are pushing prices higher:

  1. US Dollar weakness – A weaker dollar makes Silver cheaper for buyers using other currencies.
  2. Interest rate cut hopes – Lower interest rates reduce the appeal of the dollar and boost non-yielding assets like Silver.

Chart Outlook – \$39 in Sight

  • On 31st July, Silver touched its 50-day Simple Moving Average (SMA) at \$36.20.
  • From there, prices bounced back over 6%, helped by a bullish candlestick pattern that hinted at strong buying pressure.
  • Silver has now crossed above its 20-day SMA at \$38.06, confirming an upward trend.

Price Targets Ahead:

  • First hurdle: \$39.00
  • Next: Year-high at \$39.52
  • Possible breakout: \$40.00 if momentum continues

Risk Levels to Watch

The trend is positive, but markets can turn quickly. If Silver slips under \$38.00 and the 20-day SMA, sellers may push prices toward \$37.00 or even \$36.85.


Indian Investor Angle

For Indian traders, the global rally could lift silver prices per kg in the domestic market. Keep an eye on MCX silver rates, as a move toward \$39 globally can translate into higher prices locally.

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