Silver’s inability to surpass the multi-year high resistance at $35.40 triggered a selloff that pushed it towards support levels. Key support is around former highs at $32.52 and $31.76, while swing-bottom support is lower at $30.12. These levels will be closely watched as traders assess whether silver can consolidate and attempt another move higher, or whether additional profit-taking will cause further declines.
Outlook for next week: data-driven volatility expected
The coming week will bring several high-impact U.S. economic reports, including GDP, the key PCE deflator, and nonfarm payrolls. With expectations of GDP growth of 3% and increased inflation pressure, these figures will guide expectations around the Federal Reserve’s next rate hikes. A robust GDP effect could strengthen the dollar and put pressure on silver. Conversely, if inflation surprises on the upside, flows to safe havens may renew, especially if labor data point to economic vulnerabilities.
Silver faces potential downside in the near term, especially if support around $32.52 fails, but central bank demand and geopolitical factors remain supportive longer term. Dollar and Treasury yields are likely to influence the immediate price action, with silver positioned to rise if gold maintains its momentum and inflation data supports a dovish shift from the Fed. Expect volatility around key economic releases, with the $35.40 level being a crucial indicator of an eventual bullish breakout.