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Silver price remains stable around $34.00 as investors anticipate US President Trump’s detailed reciprocal tariff plan set for release on Wednesday.
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Trump’s tariffs are expected to weigh on global economic growth, including that of the United States.
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Fed’s Daly has shown reduced confidence in her earlier expectation of two interest rate cuts this year.
Silver (XAG/USD) remains rangebound around $34.00 in Monday’s European session, with investors adopting a cautious stance ahead of U.S. President Donald Trump’s announcement of reciprocal tariffs on Wednesday. The precious metal trades flat as market participants assess the potential impact of these tariffs on global economic stability.
Trump is expected to unveil reciprocal tariffs on “Liberation Day,” imposing duties equivalent to those levied by other nations on U.S. goods. These measures are anticipated to have far-reaching consequences on global trade and economic growth, increasing the appeal of safe-haven assets such as Silver.
Market sentiment suggests that the U.S. economy may also face setbacks from these tariffs, as higher import duties will likely be absorbed by U.S. importers, exacerbating inflationary pressures.
Fears of economic risks and rising inflation have prompted Federal Reserve (Fed) officials to maintain a restrictive monetary policy stance. On Friday, San Francisco Fed President Mary Daly expressed declining confidence in her previous forecast of two interest rate cuts this year. Her outlook was shaken by the higher-than-expected rise in the U.S. core Personal Consumption Expenditure (PCE) Price Index, which accelerated to 2.8% in February, exceeding expectations of 2.7% and the prior reading of 2.6%.
Historically, higher-for-longer Fed interest rates have pressured non-yielding assets like Silver. However, geopolitical and economic uncertainties continue to support demand for precious metals.
Technical Analysis: Silver Holds Above Key Support Levels
Silver is advancing toward the upper boundary of an Ascending Triangle pattern on the daily chart, near the October 22 high of $34.87. The lower boundary of this pattern extends upward from the August 8 low of $26.45, reflecting indecisiveness among market participants.
Key technical indicators:
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The 20-day Exponential Moving Average (EMA) at $33.30 continues to act as strong support.
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The 14-day Relative Strength Index (RSI) rebounds above 60.00, signaling renewed bullish momentum.
Key levels to watch:
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Support: March 6 high at $32.77
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Resistance: October 22 high at $34.87
Silver’s near-term outlook will likely depend on Trump’s tariff announcement and the broader risk sentiment in global markets.
