The U.S. Dollar Index broke below key support at 97.621, slipping to its lowest level since early 2022. Political uncertainty—fueled by reports that President Trump may seek to replace Fed Chair Powell—has dented central bank credibility, accelerating the greenback’s decline.

The euro rallied to a 3-year high at $1.1708, while the dollar posted decade lows against the Swiss franc at 0.8007. With DXY now below its 50-day moving average of 99.400, bearish pressure remains intact, especially with Q1 economic contraction and surging insured unemployment weighing on sentiment.

What Does This Mean for Silver? Dollar Weakness a Key Tailwind

Silver’s firming tone reflects growing support from a weakening dollar and safe-haven demand shifting from gold. With gold slipping and the gold/silver ratio potentially adjusting, silver’s technical setup looks more constructive. A sustained move above $36.30 opens the door to retesting the multi-year high at $37.32. Failure to hold this level would expose the $35.40–$34.87 support range. Traders are watching momentum closely, especially as the metal diverges from gold’s softening tone.

Market Outlook: Bias Tilts Bullish While Above $36.30

Silver’s short-term outlook is constructive as long as the market remains above the $36.30 pivot. Strong dollar headwinds and equity-market strength have redirected capital flows, but silver’s resilience—despite gold’s softness—suggests underlying support. Unless gold breaks down sharply or the dollar stages a surprise rebound, silver bulls may target a retest of $37.32 in the near term.

More Information in our Economic Calendar.