Silver Price Forecast: XAG/USD Hits High Above $69.00 as Dollar Weakens

Silver extended its recent rebound during early European trading on Friday, with spot silver (XAG/USD) trading near $69.11 after earlier touching a two-month high above $69.00. A broadly softer US dollar is the core driver behind this precious metals strength, with a third consecutive daily gain also reflecting improved market sentiment after recent volatility.

**Short-term technicals signal stabilization, but trend remains unclear**

From a technical indicator perspective, silver is attempting to build a base above key support zones. Market data shows the Relative Strength Index (RSI) hovering near 40, close to oversold territory, suggesting selling pressure has eased; meanwhile, the MACD indicator is showing a bullish trend with the histogram turning positive, providing momentum for the short-term rebound. However, prices remain below the 5-day and 20-day moving averages, leaving the medium-term trend neutral-to-bearish without a confirmed reversal signal. Analysts note that whether silver can hold short-term support near $69 and and challenge the $74-75 resistance zone will be key in determining whether the rebound can extend.

**Long-term structural bullish thesis intact, industrial demand provides support**

Despite sharp short-term swings, silver's long-term fundamentals remain favored by some market participants. According to reports, industrial demand from emerging sectors such as artificial intelligence, solar energy, and electric vehicles is driving a supply deficit in silver. On the technical front, silver continues to hold above the 200-day moving average (around $59.94), a level viewed as critical to sustaining the long-term recovery momentum. This structural bullish logic provides underlying support for silver prices currently sitting near multi-year highs.

**Institutional forecasts diverge significantly on longer-term prices**

For longer-term trajectory, forecasts across analytical institutions vary widely, reflecting differing views on supply-demand dynamics, global economic conditions, and monetary policy paths. For example, WalletInvestor is relatively optimistic, projecting silver prices to rise gradually with average prices climbing to $73.68 by year-end and highs potentially reaching $79.96. Meanwhile, LongForecast offers a broader range, with its model suggesting prices could peak at $94.19 within the year, though volatility is expected to remain elevated. These divergences remind investors that, in the the current high-uncertainty macro environment, silver's upward path may still be accompanied by fluctuations.