Silver prices plunged 1.6% as the dollar and yields surged late Friday.
XAG/USD hit a weekly low of $32.66, pressured by a recovering dollar and elevated U.S. Treasury yields.
Sellers failed to break the $32.50 support, temporarily limiting downside, with key support at $31.91 (50-day simple moving average).
A rebound above $33.10 could trigger an evening rally toward $33.50, but bearish momentum still dominates.
Silver prices plunged late in the North American session, hitting a weekly low below $33.00, maintaining their biggest drop since February 25, 2025. At press time, XAG/USD was trading at $33.03, down more than 1.6% on the back of a strong US dollar (USD) and elevated US yields.
Silver prices recovered after falling to a new weekly low of $32.66. XAG/USD is expected to end the week with losses, although sellers have not been able to clear the psychological support of $32.50, which could prompt a test of $32.00.
On the downside, the next key support is the 50-day simple moving average (SMA) at $31.91, followed by the 100-day SMA at $31.19. Meanwhile, if buyers push the grey metal above the March 20 low of $33.10, an evening rally towards the $33.50 level is expected.
Silver is a precious metal that is heavily traded between investors. It has been used throughout history as a store of value and a medium of exchange. Although not as popular as gold, traders may turn to silver to diversify their portfolios, because of its intrinsic value, or as a potential hedge during periods of high inflation. Investors can purchase physical silver in the form of coins or bars, or trade it through instruments such as exchange-traded funds (ETFs). ETFs track the price of silver in international markets.
Silver prices can be affected by a variety of factors. Geopolitical instability or fears of a deep recession could see silver prices rise due to its safe-haven status, though not as much as gold. As a non-yielding asset, silver tends to rise with lower interest rates. Its movements also depend on the performance of the U.S. dollar (USD), as assets are priced in dollars (XAG/USD). A stronger dollar tends to suppress silver price gains, while a weaker dollar can push it higher. Other factors, such as investment demand, mining supply (silver is much more abundant than gold), and recycling rates can also affect prices.
Silver is widely used in industry, especially in areas such as electronics or solar energy, as it has one of the highest electrical conductivity of all metals, higher than copper and gold. A surge in demand can increase prices, while a drop in demand tends to reduce them. Dynamics in the U.S., Chinese, and Indian economies can also contribute to price volatility: for the U.S. and especially China, their large industrial sectors use silver in a variety of processes; in India, consumer demand for gold jewelry also plays a key role in determining gold prices.
Silver prices tend to follow the movements of gold. When gold prices rise, silver generally follows suit, as their status as safe haven assets is similar. The gold/silver ratio shows the number of ounces of silver required to equal the value of one ounce of gold and may help determine the relative valuation between the two metals. Some investors may view a high ratio as an indicator that silver is undervalued or gold is overvalued. Conversely, a low ratio may indicate that gold is undervalued relative to silver.