Silver Price Forecast: XAG/USD Hits Record $56 as Bulls Dominate

Silver Surges to Historic Levels

Silver (XAG/USD) climbed to a new record high above 56 dollars on Friday, driven by strong bullish momentum in both industrial and investment demand. The surge followed growing expectations that the Federal Reserve might adopt a more dovish stance amid softening U.S. economic data.

Fed Policy and Market Sentiment

Market participants interpreted the latest inflation and employment figures as signs of a slowing economy, prompting renewed bets on potential rate cuts in the first half of 2026. Lower interest rates generally weaken the U.S. dollar, which tends to support precious metals such as silver and gold.

“Investors are responding to the possibility that the Fed could pivot sooner than anticipated, reigniting appetite for commodities and hard assets,” noted a senior analyst at FXStreet.

Industrial and Investment Demand Rising

In addition to macroeconomic drivers, silver has benefited from strong industrial usage, particularly in photovoltaics and electrical components. Demand from renewable energy sectors continues to grow, tightening the supply-demand balance.

Technical View

From a technical perspective, XAG/USD remains in a steep upward channel, with resistance seen near the 57-dollar mark. Key support levels are positioned around 53.50 and 51.80, which traders are watching closely for potential pullbacks.

Outlook

If the bullish trend persists, analysts suggest silver could test the 58 level in the coming weeks. However, a stronger-than-expected U.S. economic rebound or hawkish Fed communication could slow the rally temporarily.

“Silver is carving out a new era of valuation, fueled by macro liquidity and structural demand growth,” concluded the report.


Author’s Summary: Silver reached a record $56 amid Fed dovish outlook, soft U.S. data, and solid industrial demand that continue to power bullish market sentiment.

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FXStreet FXStreet — 2025-11-28

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