Silver Price Forecast: Firm Above $33.00, Poised for Possible Upside Breakout During Bullish Consolidation

• BY Ellyana
• June 2, 2025
• 0 Comments

Silver (XAG/USD) remains firm above the important $33.00 mark to start the new week, demonstrating signs of bullish consolidation following the recent breakout from a falling channel. Although the current advance is not well supported by momentum, technical analysts are pointing toward a probable breakout to the higher side should silver be able to break resistance around $33.50 and move toward $34.00 and higher. Support is still solid in the $32.70-$32.75 area, with a further decline below $32.00 risking turning the outlook bearish. In all, the setup is positive for bulls to remain optimistic about more gains. KEY LOOKOUTS • Look for dips below this level for possible buying opportunities, with near-term support envisioned at $32.70-$32.75. • This supply level is a significant barrier; a continued breach above it might set the stage for $34.00 and the ytd highs at $34.55-$34.60. • Encouraging but guarded momentum on daily charts implies bullish consolidation but necessitates cautious observation before risking bets on good runs. • A clear breakdown below the 100-day SMA around $32.00 may lead to additional selling pressure, potentially taking prices down to the $31.40 support and changing bias towards bears. The pivotal levels to observe are the essential support around $33.00, where declines might see buying interest, and the robust resistance around $33.50, which should be overcome for silver to target higher towards $34.00 and the year-to-date highs around $34.55. While technical charts on the daily time frames are marginally bullish, momentum is cautious and advises closely watching price action. On the bearish side, a definite breach of the 100-day SMA around $32.00 can trigger higher selling pressure and drive silver down to the $31.40 level of support and turn the near-term bias to the downside. Silver’s major support at $33.00 could draw in buyers, while resistance at $33.50 must be breached for additional advances to $34.00. A breach below the 100-day SMA of about $32.00 would change momentum bearish, boosting risk for additional declines. • Silver remains firm above key $33.00 support at the beginning of the week. • The metal is in a bullish consolidation following a breakout from a falling channel. • Closest immediate resistance is at the $33.50 supply level, which needs to be overcome for more upside. • Breaking $33.50 might pave the way towards $34.00 and the year-to-date high around $34.55-$34.60. • Technicals reflect modest bullish sentiment but without strong conviction, so cautious optimism remains. • Support around $32.70-$32.75 still plays a key role to avoid more downside. •  A strong fall below the 100-day SMA around $32.00 would instigate bearish selling pressure down to $31.40 in favor of bearish traders. Silver is maintaining consistent investor interest as it remains above the $33.00 level at the beginning of the week. The metal continues to find buyers looking for value at the current price, which indicates bullish sentiment towards its short-term direction. Market onlookers are keenly observing, speculating a potential upside move while demand for silver remains supported by general economic fundamentals and safe-haven demand. XAG/USD DAILY PRICE CHART CHART SOURCE: TradingView Looking forward, silver’s prospects seem cautiously optimistic as it faces a consolidation period. Momentum may be moderate, but overall sentiment supports a steady rise as investors balance global economic developments, inflation worries, and industrial demand. The precious metal’s performance in the immediate days ahead will be more than likely determined by market sentiment and extrinsic factors than abrupt dramatic changes. TECHNICAL ANALYSIS Silver is now consolidating above the $33.00 level after breaking from a downtrend channel, suggesting a possible bullish trend. The major resistance level near $33.50 is watched closely, as a breakout above this area would be likely to confirm continued upside momentum toward recent highs of about $34.60. Though indicators on the daily charts reflect weak positive signals, there is a lack of strong momentum, and hence traders need to be cautious. On the flip side, support at $32.70 and the 100-day simple moving average at $32.00 are significant levels to watch, with a breakdown below having the potential to flip the short-term bias to the downside. FORECAST Silver looks set for a possible upside if it is able to hold support above the important resistance price of around $33.50. A clean breakout above this range could set the stage for advances to the $34.00 level and possibly test the year-to-date highs of around $34.55-$34.60. Ongoing buying interest at these levels and favorable technical factors favor additional appreciation, and silver may gain from fresh bullish optimism in the near term. On the negative side, the price of silver is still exposed if it cannot sustain the important support around $33.00. Breaking below this could provide the way for continued falls to the lower support level around $32.70. Most significantly, a clean break below the 100-day moving average at $32.00 could prompt heightened selling pressure, causing prices to fall down to the $31.40 region and possibly changing the near-term trend in the direction of bearish traders. Traders should be mindful of these critical levels of support in order to maintain optimal risk management.