Last Updated on August 31, 2026 by Deon
Silver price regained ground on Monday. XAG/USD moved toward the $67.00 area after a start to the trading session. Silver opened near $65.67. Bounced as traders shifted attention to the upcoming US Nonfarm Payrolls (NFP) report.
The recovery comes after a period for Silver. Week Silver faced heavy selling pressure as markets reacted to renewed concerns about inflation and the possibility that the Federal Reserve could keep a tighter monetary policy for longer.
For now the US jobs report is expected to become the major driver for the Silver price forecast.
Silver Price Recovers After Weak Opening
XAG/USD showed renewed buying interest after falling toward the mid-$65 area. According to the market update Silver climbed around 1% during the European session and moved back toward $67.00.
The initial weakness came after Fridays decline. Investors reacted to signals from Federal Reserve Chair Kevin Warsh, who stressed the importance of bringing inflation back toward the Feds 2% target.
Higher interest rates are usually challenging for non‑yielding assets such as Silver and Gold. When bond yields and interest‑rate expectations rise holding metals can become less attractive because they do not provide regular interest income.
As a result the Feds policy outlook remains a factor for the XAG/USD forecast.
US NFP Data Takes Center Stage
The next major event for markets is the US Nonfarm Payrolls report for August. The data will give investors a picture of conditions in the US labor market and could influence expectations for future Federal Reserve policy.
The previous employment report had an impact on market expectations. Julys data showed a loss of 23,000 jobs, which caused investors to reconsider how aggressive the Federal Reserve might be with interest‑rate increases.
A strong employment report could support the US Dollar. Strengthen expectations that the Fed will remain focused on controlling inflation. Such a result could create pressure on Silver prices.
On the hand weaker‑than‑expected NFP data could raise concerns about slowing economic growth. This may reduce expectations for monetary tightening and potentially provide support to precious metals.
For this reason the upcoming jobs report could lead to increased volatility in XAG/USD.
Hawkis`h Fed Outlook Creates Pressure
Federal Reserve Chair Kevin Warshs comments at the Jackson Hole Symposium remained an influence on the market.
Warsh warned about inflation risks and emphasized that the central bank still has work to do before inflation can return convincingly to its 2% target.
The comments increased concerns that interest rates could remain high or even rise further if underlying inflation does not show signs of improvement.
This outlook is generally negative for Silver because Silver does not generate interest. Higher borrowing costs and stronger bond yields can encourage investors to move toward interest‑bearing assets.
However Silvers recovery shows that buyers are still active particularly when Silver prices move closer to support levels.
The balance between inflation risks US economic data and Federal Reserve expectations will likely remain crucial for the Silver market in the coming days.
Geopolitical Tensions Add to Market Uncertainty
Geopolitical developments are also contributing to uncertainty across markets. Renewed tensions between the United States and Iran have increased concerns about disruptions and rising energy prices. Higher oil prices can create inflation pressure making the Federal Reserves task more difficult.
If energy costs remain elevated policymakers may face pressure to keep monetary policy tight. This could limit the potential for Silver and other non‑yielding assets.
At the time geopolitical uncertainty can sometimes increase demand for safe‑haven assets. Silver does not always react in the way as Gold but periods of rising global risk can still influence investor demand.
As a result traders are watching both geopolitical developments when assessing the near‑term silver price outlook.
XAG/USD Technical Analysis
From a perspective XAG/USD is showing a relatively constructive short‑term structure.
Silver is trading above its 20‑day Exponential Moving Average (EMA) located near $65.65. Staying above this moving average suggests that the broader bullish trend remains intact.
The Relative Strength Index (RSI) is near 56 indicating positive momentum. The indicator is not currently in territory, which suggests that there may still be room for Silver price movement in either direction.
The area around the closing price near $66.93 is acting as an important short‑term pivot.
On the downside the 20‑day EMA near $65.65 remains a support level. If Silver stays above this zone any short‑term declines may be viewed as pullbacks rather than signs of a major trend reversal.
A sustained move below this support area however could weaken the market structure and increase the risk of further selling pressure.
What Is Next for the Silver Price?
The near‑term direction of Silver will likely depend heavily on the US NFP report and how investors interpret its impact on Federal Reserve policy.
A strong labor market reading could support the US Dollar. Reinforce expectations for tighter monetary policy potentially putting pressure on XAG/USD.
A weaker report however could increase concerns about the US economy. Reduce expectations for further Fed rate hikes. This could offer support to Silver prices.
At the time traders will continue monitoring inflation trends, oil prices, bond yields and geopolitical developments.
Overall Silver has managed to recover from its weakness and return toward the $67.00 area. The fact that XAG/USD remains above its 20‑day EMA keeps the short‑term outlook relatively constructive. However with the US jobs report approaching and Federal Reserve policy expectations still uncertain volatility could remain high. The next few trading sessions may provide a signal, about whether Silver can extend its recovery or face another round of selling pressure.
