As predicted in the previous forecast, silver prices have continued to advance within a medium-term uptrend. Last week, sellers of the metal tested the trendline near $37, which was followed by a strong rebound. The 50-day moving average, now acting as solid support and preventing significant drawdowns, keeps contributing to the bullish momentum. Silver is poised to retest its 14-year high of just above $39.5, set on July 23.
On the daily timeframe, the RSI is gradually trending upward, but not entering overbought territory yet. A potential correction could materialize upon a retest of the July high. Under such circumstances, quick profit-taking on short positions is recommended. The Stochastic Oscillator lines also support the idea of further price gains. The upper Bollinger Band seems to be the only challenge on its path to $39.5. A decisive break above this barrier could reinforce bullish sentiment.
Fundamentally, silver’s strength was bolstered by the Fed Chair’s speech last Friday. Jerome Powell acknowledged deteriorating US labor market conditions that could force the central bank to cut interest rates at its September 17 meeting. Markets are now pricing in nearly a 90% probability of monetary easing next month, which has weakened the US dollar and, in turn, supported dollar-denominated commodities such as silver.
In light of these developments, UBS analysts have revised their silver forecasts upward. While their projections for Q4 2025 and Q1 2026 remain unchanged at $42 per ounce, their outlook for Q2 and Q3 2026 has been raised to $44. UBS experts recommend investors to buy silver when it drops below $36.
Consider the following trading strategy:
Buying silver in the range of $38.5–$38.8. Take profit: $39.5. Stop loss: $37.7.
This content is for informational purposes only and is not intended to be investing advice.
