Silver Price Forecast: XAG/USD Holds Near $36 Amid Weaker Dollar and Ceasefire Optimism

Silver (XAG/USD) is trading with slight gains around $35.95 during Wednesday’s Asian session, supported by a softer US Dollar and cautious market sentiment. The recent ceasefire agreement between Israel and Iran has eased geopolitical tensions, shifting risk appetite and capping safe-haven flows into precious metals like silver.

Weaker Dollar Supports Silver Prices

The US Dollar remains under pressure after disappointing economic data. On Tuesday, the Conference Board reported that the US Consumer Confidence Index fell to 93 in June, missing expectations and highlighting rising concerns over President Trump’s trade policies. A weaker dollar typically boosts dollar-denominated assets like silver, providing near-term support for XAG/USD.

Ceasefire Limits Upside for Safe-Haven Assets

Despite silver’s mild gains, the broader risk-on mood driven by the Israel-Iran ceasefire has limited its upside. Both nations have pledged to honor the truce conditionally, easing fears of a wider conflict. However, Israeli Prime Minister Benjamin Netanyahu warned that further strikes could follow if Iran resumes its nuclear development, keeping geopolitical risks in play.

What to Watch: Fed Chair Powell’s Testimony

Market participants are now focused on Fed Chair Jerome Powell’s testimony later today. Any dovish signals regarding monetary policy or interest rate cuts could weigh further on the US Dollar and support silver prices.

Silver Price Technical Outlook

• Current Level: $35.95
• Support Levels: $35.50, $35.20, $34.80
• Resistance Levels: $36.30, $36.75, $37.00

XAG/USD is holding above key support levels, but the upside remains capped unless renewed geopolitical tensions or a dovish Fed stance drive additional demand for safe-haven metals.

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