- Silver surges toward $34.00 as demand strengthens amid global economic uncertainty.
- The Federal Reserve is expected to keep interest rates unchanged on Wednesday.
- US President Trump is set to discuss a temporary Ukraine ceasefire with Russian leader Putin.
Silver (XAG/USD) climbed to a fresh four-month high of $34.10 during European trading on Tuesday, as the US Dollar (USD) weakened amid growing economic uncertainty under President Donald Trump's leadership. The US Dollar Index (DXY) dipped toward a five-month low of 103.20, reflecting investor concerns over potential economic slowdown due to new tariff policies.
Traders are closely monitoring developments in US-Russia talks regarding a proposed 30-day ceasefire in Ukraine. While Ukraine has already agreed to the plan following discussions with US officials, European Union (EU) foreign policy chief Kaja Kallas indicated that Russia’s demands suggest a lack of commitment to peace. A positive resolution could reduce demand for safe-haven assets like silver, while continued geopolitical tensions would keep the metal supported.
Looking ahead, investors await the Federal Reserve’s (Fed) interest rate decision on Wednesday. The Fed is widely expected to maintain rates in the 4.25%-4.50% range, with market participants focusing on the updated dot plot for insights into future policy direction.
Silver Technical Analysis
Silver continues to strengthen, testing the upper boundary of an Ascending Triangle pattern on the daily chart, with resistance near the October 22 high of $34.87. This pattern, which extends from the August 8 low of $26.45, suggests market indecision but maintains an overall bullish bias.
- The 20-day Exponential Moving Average (EMA) at $32.77 signals a strong uptrend.
- The 14-day Relative Strength Index (RSI) remains above 60.00, indicating solid bullish momentum.
- Key support is found at the March 6 high of $32.77, while the next resistance stands at the October 22 peak of $34.87.
If silver breaks above $34.87, it could trigger further gains, while failure to sustain momentum may lead to consolidation near $32.77.
