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Silver pulls back on Tuesday as the US Dollar strengthens.
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The overall trend stays bullish, with support holding above $34.00.
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XAG/USD encounters key resistance near the $35.00 mark
Silver prices (XAG/USD) are trading lower during Tuesday’s European session, pressured by a firmer US Dollar as the risk-off sentiment seen on Monday has somewhat eased.
On Monday, silver reached fresh six-month highs as the US Dollar weakened due to renewed tariff concerns and disappointing US economic data. The US Manufacturing PMI highlighted the negative impact of tariffs on factory activity, pushing the Dollar to multi-month lows.
From a technical standpoint, silver’s broader trend remains bullish. The recent pullback from $34.75 found support around the $34.00 level, which has now turned from prior resistance into a potential support zone near $33.70.
Looking ahead, significant resistance lies between $34.75 and $35.00, marked by previous highs from October 23 and June 4, as well as the 161.8% Fibonacci extension, presenting a challenging barrier for bulls. Beyond this, the late 2012 peak at $35.40 and the 261.8% Fibonacci retracement near $37.00 are key levels to watch.
On the downside, immediate support levels are at $33.70 and further down between $32.65 and $32.75.
XAG/USD 4-Hour Chart
