Silver (XAG/USD) is trading higher around $32.60, recovering from intraday lows near $32.13 as the metal rebounds after two days of losses. The recovery is supported by a softer US Dollar and steady demand for industrial metals, despite easing geopolitical tensions.

Recent geopolitical de-escalation and improving global risk sentiment have softened silver’s safe-haven demand. Additionally, ongoing negotiations between Russia and Ukraine and a truce between the US and China have eased global trade tensions. However, silver retains support from robust industrial demand, with projections indicating usage will surpass 700 million ounces in 2025, fuelled by sectors like electric vehicles and solar panels.

Meanwhile, the US Dollar Index is near 100.00, reaching a weekly low after Moody’s downgraded the US credit rating from Aaa to Aa1. Concerns over US government debt and budget deficit have raised caution among bondholders, pressuring the Greenback and aiding US Dollar-denominated commodities like silver.

Technically, silver is consolidating within a symmetrical triangle pattern, with support near $32.00 and resistance from descending trendlines. The 21-day EMA at $32.56 and the RSI at 50 suggest mixed signals, while MACD lines indicate a potential bullish crossover.

A move above $33.00 could lead to $34.00, whereas pressure below $32.00 may target the $31.00–$30.75 range.

Considering what we already know—silver inching higher to $32.60 after scraping lows near $32.13—the latest shifts point to a short-lived rebound within a larger question mark. Two days of slippage came to a halt, for now at least. The bounce is aided by a lighter US Dollar and still-firm industrial demand. But underneath, the balance is more layered.

Though geopolitical tempers are cooling—which usually puts metals like silver on the defensive—industrial activity remains resilient. The constant forward drive in cleaner technologies continues to pull silver in, from electric vehicles to solar energy installations. A forecast of more than 700 million ounces needed by 2025 hasn’t been revised down, which suggests real flows, not just investment positioning.

Moody’s trimming the US credit rating down to Aa1 has lent some weight to silver’s current levels by weighing on the Dollar’s stability. Investors are increasingly uneasy about US government debt volumes, and the deficit troubles keep the USD Index hovering near 100.00. When the Dollar weakens, metals priced in Dollars tend to get an uplift—as they become effectively cheaper to non-USD buyers.

From a technical perspective, we’re observing consolidation rather than trend. A symmetrical triangle suggests neither side has taken full control. Support remains close to $32.00, and trendline resistance is tightening its grip from above. Price action around the 21-day moving average near $32.56 is worth attention now—it’s not far from current levels, and the RSI floating at 50 doesn’t lean either way. MACD, however, is beginning to show signs that may soon form a bullish crossover, a momentum signal we should not overlook.

For those of us watching, a close above $33.00 may trigger follow-through strength toward $34.00, potentially opening short-term breakout scenarios. On the downside, a sustained move below $32.00 would likely reinforce heavier action towards $31.00 and even as far down as $30.75, especially if macro pressures remain unsupportive.

We should be cautious around resistance zones while not ignoring the strength from industrial undercurrents. Moves leading into and beyond triangle boundaries will require tight monitoring, especially if volatility picks up. Near-term positioning should account for a broadening range, not just the edges.