Silver (XAG/USD) Price Prediction: Dollar Strength Triggers 11% Silver Drop as $75 Support Comes Into Focus

This follows a broader pullback in precious metals, including COMEX futures, which saw declines of roughly 30% at peak volatility levels last Friday. Analysts attribute the movement to profit-taking, a stronger U.S. dollar, and evolving expectations for tighter Federal Reserve monetary policy.

According to market data from TradingView and price updates reported by CN Wire, silver opened the day at around $84.83 before retreating sharply. As of mid-day trading, silver was consolidating in a range of $75–$78 per ounce, suggesting that investors are closely observing key support levels. The reported prior surge toward $120 reflects a combination of futures activity and short-term price spikes in certain regional markets, rather than a sustained spot price across all trading venues.

Silver Price Today: Technical Setup and Support Zone

Recent price activity indicates a potential accumulation area near $78. Technical analysis shows that this zone aligns with previous weekly support levels and volume concentrations, which historically have served as short-term buying interest points.

On February 2, 2026, spot silver dropped 11.3% to $75, trading near $75–$78 amid ongoing volatility. Source: CN Wire via X

Market participants have highlighted opportunities in this range. A derivatives trader active in silver futures noted that accumulating positions below $78 may offer a measured risk entry, reflecting recent consolidation and technical support.

Key indicators, including RSI analysis and MACD signals, suggest short-term bearish pressure. However, these metrics also imply that upside momentum could resume if the $75–$78 support holds. Traders observing silver support levels and the silver price chart are awaiting confirmation of stabilization before increasing positions.

Macro Factors: Silver and U.S. Monetary Policy

Silver’s recent volatility is closely linked to macroeconomic developments. A stronger U.S. dollar and expectations of tighter Federal Reserve policy have weighed on silver, traditionally a safe-haven and inflation-hedging asset. Historically, silver often moves inversely to the dollar, reflecting investor sensitivity to interest rates and inflation trends.

Silver’s recent pullback reflects normal profit-taking after a strong rally, not sudden demand spikes or conspiracies. Source: Marco Pabst via X

Market commentary notes that silver continues to serve as a hedge against inflation and a debasement trade amid periods of economic uncertainty. Rising interest rates increase the opportunity cost of holding non-yielding assets, impacting the silver price today in USD. At the same time, underlying industrial demand—notably from solar energy, electronics, and electric vehicle applications—supports medium-term stability.

Silver Price Forecast: Rebound Potential

Despite the decline, analysts highlight a potential rebound if silver sustains the $75–$78 support range. A recovery toward $100 per ounce remains plausible, supported by prior consolidation zones and technical resistance levels.

Silver experienced a sharp decline, stabilized at a key support zone, and is anticipated to rebound toward $100 before the market determines its next direction. Source: FadeMeIfYouCan on TradingView

Recent market behavior, including large notional futures volumes, has contributed to heightened volatility but also sets the stage for potential mean reversion. Disciplined accumulation in these zones, coupled with easing speculative positioning, could provide upward pressure. Monitoring silver ETF flows and physical demand trends will be key to assessing medium-term opportunities.

Silver Price Outlook Amid Economic Uncertainty

Silver’s trajectory will continue to depend on a mix of macroeconomic and asset-specific factors:

• U.S. inflation data and the CPI impact on silver
  
• Federal Reserve rate decisions, including potential cuts or pauses
  
• Industrial demand trends, particularly in renewable energy and electronics
  
• Dollar strength and correlations with other commodities and crypto assets

Volatility this week reflects both short-term corrective pressure and the broader precious metals outlook. Investors and traders seeking exposure to silver should monitor support levels, technical analysis, and macroeconomic catalysts in tandem to assess potential rebounds.

Final Thoughts

Silver’s 11% intraday decline underscores the metal’s sensitivity to macroeconomic shifts and market positioning. With consolidation zones forming near $75–$78 and potential upside toward $100, the market remains at a critical juncture.

A close below $78 would break key 50-day EMA support, with $70 threatening the bull run. Source: Ardi via X

A combination of disciplined accumulation, technical confirmation, and macro awareness will be essential for market participants evaluating silver price movement today and potential medium-term opportunities.