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Silver price approaches $30.50 as escalating US-China trade tensions spark market jitters.
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President Trump’s threat of an additional 50% tariff on Chinese goods adds to investor concerns.
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Market participants eye upcoming US inflation data for clues on the Federal Reserve's rate path.
Silver (XAG/USD) continues its upward momentum during Tuesday’s North American session, approaching the $30.50 mark as safe-haven demand strengthens. The white metal gains traction amid mounting concerns over the outlook of US-China trade relations, with investors growing cautious about the potential fallout on the global economy.
Tensions escalated after a spokesperson for China’s Ministry of Commerce slammed recent tariff threats from US President Donald Trump, calling them “a mistake on top of a mistake,” and vowed to “fight to the end” to protect national interests. This response came after Trump warned of imposing tariffs as high as 104% on Chinese goods if Beijing proceeds with its announced 34% retaliatory duties on US imports, which are set to take effect on Liberation Day.
The prospect of a full-blown trade war between the two economic superpowers has rattled global markets, driving demand for traditional safe havens like silver. However, the industrial side of silver is facing pressure, given China’s pivotal role in global manufacturing. Silver is widely used in sectors like electric vehicles, solar energy, and electronics—industries that could suffer under worsening trade conditions.
Looking ahead, investors will shift focus to the US Consumer Price Index (CPI) data for March, due Thursday. The inflation report is likely to influence the Federal Reserve’s stance on monetary policy, which in turn could impact silver prices through its effect on the US Dollar and Treasury yields.
Silver Technical Analysis
From a technical perspective, silver is attempting a recovery toward the previously broken support of an Ascending Triangle near $26.45, marked by the August 8 low. The pattern’s horizontal resistance—originating from the October 22 peak at $34.87—remains a major ceiling for bulls.
Despite the current rebound, the broader trend remains bearish as silver continues to trade below the 200-day Exponential Moving Average (EMA), which currently hovers around $30.70. The 14-day Relative Strength Index (RSI) has dipped into the 20.00–40.00 zone, reflecting growing bearish momentum.
Key support is seen at $26.45, while a push toward the April 4 high of $32.00 would face significant resistance. A breakout or rejection at these levels could shape the next major directional move for silver.
Silver daily chart
