Silver Price Forecast: XAG/USD meets resistance near $53.50 amid US Dollar recovery

• Silver price pares gains following a rally towards $53.50.
• A modest US Dollar rebound appears to curb the advance in Silver prices.
• Political pressures cloud the US Dollar’s medium-term prospects, ING warns.

Up 0.6% at around $52.50 in Thursday’s European trading, Silver (XAG/USD) has retreated from an earlier rally towards $53.50. A partial recovery in the US Dollar (USD) is limiting the white metal’s advance.

Having recovered from a retest of the previous day’s monthly low of 101.10, the US Dollar Index (DXY) stands slightly lower at around 101.44 at the time of writing. The index measures the Greenback against six major currencies.

Nevertheless, Silver’s outlook appears bullish. The victory of the United States (US) Democrats in the midterm elections has put the US Dollar’s medium-term appeal at risk.

From a technical perspective, a weaker US Dollar enhances Silver’s appeal to investors on a risk-reward basis.

US political tensions cloud Dollar prospects heading into 2027

The US political landscape could present another medium-term obstacle for the Dollar, according to analysts at ING. In their view, “the dollar could see a little more weakness into 2027, however, if an emboldened Democratic Party takes greater issue with Republican policy, including deregulation and the AI build-out.” The analysts also note that “the potential for a prolonged government shutdown in mid-2027 adds to the case for a weaker dollar next summer,” supporting their assessment that mounting political tensions may increasingly undermine the currency’s appeal.

Friday’s release of the US Nonfarm Payrolls (NFP) figures for October will be the next focus for investors. The employment report is expected to shape expectations for Federal Reserve (Fed) interest rates.

Silver remains below key technical resistance

At $52.66 on the daily chart, XAG/USD retains a bearish short-term bias, with spot prices below the 20-day exponential moving average (EMA) of $54.66. The retreat from recent highs leaves Silver beneath this dynamic resistance level. Meanwhile, the Relative Strength Index (RSI) stands at 39.85, still in bearish territory but above oversold extremes. This suggests weak yet stabilising downside momentum, rather than an imminent reversal.

For buyers, the first significant hurdle is the 20-day EMA at $54.66. A move back above it would be needed to relieve immediate selling pressure and pave the way for a more sustained recovery. Immediate support, meanwhile, lies at the 3 November low of $48.62.

(An AI tool assisted in preparing this article’s technical analysis. Find out more.)