Silver Price Forecast: XAG/USD crashes toward $33.00, suffers worst daily loss since February

Silver

FXStreetMar 21, 2025 8:20 PM

Silver plunges 1.6% as US Dollar and yields surge late Friday.
XAG/USD hits weekly low of $32.66, pressured by a resurgent Greenback and elevated US Treasury yields.
Sellers fail to breach $32.50 support, keeping downside capped for now, with key support at $31.91 (50-day SMA).

A rebound above $33.10 could trigger a late recovery toward $33.50, but bearish momentum remains dominant.

Silver prices plunged late in the North American session, hitting a weekly low beneath $33.00, sustaining its most significant loss since February 25, 2025. At the time of writing, XAG/USD trades at $33.03, down more than 1.6%, blamed on a strong US Dollar (USD) and elevated US yields.

XAG/USD Price Forecast: Technical outlook

Silver price dipped to a fresh weekly low of $32.66 before recovering some ground. XAG/USD is poised to finish the week with losses, though sellers remained unable to clear the $32.50 psychological support level, which could’ve sponsored a test of the $32.00 figure.

On the downside, the following key support level is the 50-day Simple Moving Average (SMA) at $31.91, followed by the 100-day SMA at $31.19. At the same time, if buyers push the grey metal above the March 20-day low of $33.10, expect a late rally toward the $33.50 mark.

XAG/USD Price Chart – Daily

Silver FAQs

Why do people invest in Silver?

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Which factors influence Silver prices?

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.

How does industrial demand affect Silver prices?

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.

How do Silver prices react to Gold’s moves?

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.