Silver price (XAG/USD) is around $32.70 during Asian trading hours on Monday, supported by a weakening US Dollar. Concerns regarding US President Donald Trump’s tariff plans may enhance safe-haven flows, contributing to the rise in Silver’s price.
The market outlook remains bullish, with prices holding above the 100-day Exponential Moving Average. The 14-day Relative Strength Index (RSI) stands near 64.40, indicating potential upward movement.
Key resistance lies between $33.35 and $33.40. If prices consistently trade above this range, targets include $34.55 and potentially $34.87.
Initial support is at $31.52, with additional support levels at $30.90 and $30.70.
Prices are influenced by numerous factors, including geopolitical tensions and economic conditions in major markets. Silver’s industrial applications also significantly affect demand—its use in electronics and solar energy is notable.
Silver typically moves in tandem with Gold prices, mirroring their safe-haven asset status. Analysts may look at the Gold/Silver ratio to assess their relative valuations, guiding potential investment decisions.
With Silver holding firm at $32.70 in early Asian trade, the weakening US Dollar appears to be keeping prices elevated. Market sentiment remains positive, largely due to persisting concerns over Donald Trump’s trade policies, which may drive further safe-haven demand. These tariff-related anxieties could maintain an environment where precious metals attract cautious investors looking to hedge against economic risk.
Technical indicators continue to reflect strength. With prices holding above the 100-day Exponential Moving Average, short-term momentum appears favourable. The RSI hovering around 64.40 suggests there may still be room for further upside before overbought conditions emerge. However, traders should watch for any rapid shifts in momentum.
For those focusing on key price levels, resistance is marked near $33.35–$33.40. If Silver pushes past this, there is scope for a move towards $34.55, with an extended target around $34.87. A decisive break above these levels would suggest continued buying interest, further reinforcing the current bullish sentiment.
On the downside, initial support is found at $31.52, while stronger buying support exists around $30.90 and $30.70. Should prices retreat, these levels may attract renewed interest from dip buyers looking to capitalise on lower entries.
Beyond technicals, external market forces remain influential. Geopolitical tensions, particularly trade uncertainties and macroeconomic conditions in top economies, could dictate price direction. Additionally, industrial demand remains a significant factor, with Silver playing a key role in technology and renewable energy sectors, such as electronics and solar panels.
There is also the broader relationship with Gold to consider. Historically, Silver often tracks movements in Gold, given their perceived safe-haven attributes. The Gold/Silver ratio can offer insights into valuation trends—if the ratio shifts considerably, it may provide clues about potential reversals or momentum changes in either metal.
With the current trajectory still leaning upwards, traders should stay alert to technical signals and macroeconomic developments. Reaction to tariff discussions, fluctuations in the US Dollar, and broader commodity movements will be particularly important in shaping short-term price action.
