- Silver price holds steady near $32.30 as a weaker US Dollar and uncertainty surrounding Trump’s reciprocal tariffs support gains.
- The US Dollar softens as improved sentiment over Russia-Ukraine peace talks boosts market confidence.
- Strong US CPI data for January reinforces expectations that the Federal Reserve will maintain its “higher for longer” interest rate stance.
Silver (XAG/USD) remains resilient near Wednesday’s high of $32.30 in the European session on Thursday, as uncertainty looms over potential reciprocal tariffs from US President Donald Trump. The White House indicated on Wednesday that Trump may announce his tariff plan before meeting Indian Prime Minister Narendra Modi on Thursday. This development raises concerns of a global trade war, strengthening the safe-haven appeal of precious metals like Silver. During his campaign, Trump vowed to implement a "tariff for a tariff" policy, mirroring foreign import duties imposed on US goods.
Market sentiment remains risk-on, driven by progress in Russia-Ukraine peace talks after a prolonged three-year war. Silver saw strong rallies during the initial conflict, and renewed diplomatic efforts have eased geopolitical tensions. Additionally, the White Metal benefits from a weaker US Dollar (USD), as improved market sentiment weighs on the Greenback. The US Dollar Index (DXY) has declined to near 107.50, further supporting Silver’s bullish momentum.
Despite this, the US Dollar’s weakness persists even after January’s hotter-than-expected Consumer Price Index (CPI) report, which has reinforced expectations that the Federal Reserve (Fed) will maintain interest rates within the 4.25%-4.50% range for an extended period. While higher interest rates generally pressure Silver prices, the metal continues to hold firm due to broader market dynamics.
Silver Technical Analysis
Silver remains pressured near its immediate resistance of $32.50, marked by the December 9 high. However, the overall outlook stays bullish as the metal trades above the 50-day Exponential Moving Average (EMA), currently positioned around $30.95.
The 14-day Relative Strength Index (RSI) has re-entered the neutral 40.00-60.00 range, signaling a slowdown in bullish momentum but not a shift in trend. Key support lies at the upward-sloping trendline from the August 8 low of $26.45, around $29.50. On the upside, the October 31 high of $33.90 serves as a critical resistance level for further gains.
Sliver daily chart
