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Silver surges following President Trump’s accusations that China breached a trade deal.
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Tariff concerns drag down the US Dollar, boosting demand for XAG/USD.
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Silver rallies over 3%, breaking above the 10-day Simple Moving Average.
Silver (XAG/USD) is enjoying strong upside momentum on Monday, with prices surging over 3% amid renewed safe-haven demand and a weakening US Dollar. The precious metal has climbed above the 10-day Simple Moving Average (SMA), which now offers support near $33.28 at the time of writing, signaling a bullish shift in short-term market sentiment.
The rally comes on the back of heightened geopolitical tensions after US President Donald Trump accused China of breaching the Geneva trade agreement signed on May 12. In a post on Truth Social, Trump asserted: "China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!"
While Trump provided limited details, a Reuters report points to growing frustration over China’s delay in accelerating rare earth mineral exports. These minerals are vital for the global automotive industry, particularly in the production of rare-earth magnets used in essential vehicle systems such as windshield wipers and anti-lock brakes. The shortage has raised concerns about potential automotive plant shutdowns, adding to the market’s unease.
Further contributing to the market caution, US Treasury Secretary Scott Bessent acknowledged last week that trade talks with China had "stalled" and that a breakthrough would likely require direct discussions between President Trump and President Xi Jinping.
In this environment of rising uncertainty, investor appetite has shifted toward safe-haven assets, with both Gold and Silver benefiting from outflows in risk-sensitive markets. Silver, in particular, is drawing strong technical and fundamental support as tensions escalate.
Silver Daily Chart: Key Technical Levels
Silver is now testing levels last seen in early May, with bullish momentum reinforced by the breakout above the 10-day SMA. The next upside target lies near $34.00, with a clear break potentially opening the door toward $34.60 — a level last tested during April's highs.
If the rally stalls, initial support is expected at $33.28, followed by stronger backing near $32.75, the 23.6% Fibonacci retracement of the March–May rally.
Key Levels to Watch:
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Resistance: $34.00, $34.60
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Support: $33.28, $32.75 (23.6% Fib)
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Trend Bias: Bullish above $33.00, momentum intact with safe-haven tailwinds.
