XAG/USD has surged above $31.50 as demand increases due to tariff uncertainties. Silver now targets $32.00 following a rise from below the 50-day SMA.
President Trump confirmed tariffs on goods from Mexico, Canada, and China, starting March 4, contributing to the surge. Silver is currently trading at $31.67, appreciating by 1.76% due to the softening Greenback and declining US Treasury bond yields.
Key Resistance And Support Levels
A daily close above $31.50 could challenge resistance levels at $32.00 and $33.20. If prices fall below $31.50, support is expected at the 50-day SMA, with further support at $30.43.
Silver is widely used for both investment and industrial purposes, and its price can be influenced by various factors, including geopolitical events, interest rates, and economic conditions in major markets.
With silver’s sharp move above $31.50, the price appears to be pushing towards the $32.00 level, having already jumped by 1.76% amid a weaker US Dollar and falling Treasury yields. The latest push comes as traders react to fresh trade policies, with the US President confirming new tariffs on products originating from Mexico, Canada, and China. This shift in policy, set to take effect on 4th March, seems to have sparked increased interest in precious metals, as investors assess the outcome of potential supply chain disruptions and inflationary pressures.
Having established itself above the $31.50 mark, silver may attempt to test resistance at $32.00, with another barrier waiting at $33.20 if momentum persists. Traders should keep a close eye on daily closes, as slipping below the breakout level could see prices testing the 50-day simple moving average (SMA), followed by further support at $30.43. Within this context, price action will likely be influenced by changing expectations around monetary policy as well, with bond yields and risk sentiment playing a part in shaping the next move.
Market Drivers And Trend Analysis
Considering silver’s dual role as both an industrial metal and a store of value, market participants ought to monitor various factors affecting demand. Geopolitical events, central bank policies, and broader macroeconomic developments could all feed into price direction, prompting shifts in positioning. Those looking at options and futures trading on silver may want to assess volatility trends, given that fluctuations in dollar strength and bond yields tend to impact price swings.
For now, market movements suggest a preference for haven assets amid an uncertain trade backdrop. Monitoring key levels, particularly the breakout zone at $31.50, will be important in gauging whether silver extends its climb or faces a pullback.
