Silver has now approached the 50-day moving average at $32.70 — a critical level for short-term bulls. A decisive break below would likely trigger further selling, with the 200-day moving average at $31.50 becoming the next major support target. On the flip side, resistance stands at $33.70, last week’s high and the same level as the April 24 peak. A breakout above would set sights on the March 27 high of $34.59, followed by longer-term barriers at $34.87 and $35.40.

Fed Signals and Inflation Data Could Influence Next Move

Markets are now eyeing comments from Federal Reserve officials and the upcoming U.S. core PCE inflation report. Traders are currently pricing in 47 basis points of rate cuts by year-end, with the first likely in October. Dovish remarks or a weaker inflation reading could reintroduce support for precious metals, especially if real yields ease in response.

Until then, both gold and silver remain under pressure. Rhona O’Connell of StoneX notes that while gold is consolidating, “uncertainty will keep prices supported.” That same logic applies to silver — technical levels and Fed tone will dictate whether buyers step back in.

With silver near the $32.70 mark, traders should brace for heightened volatility. A clean hold at this support could attract dip-buying, especially if inflation data disappoints or rate cut expectations intensify. However, a breakdown exposes silver to a deeper retracement toward $31.50. Until clearer guidance emerges from the Fed, the near-term tilt remains bearish.