Silver prices have dropped to approximately $32.00, marking a third consecutive day of decline. This movement occurs despite the confirmation from US President Trump regarding the implementation of a 25% tariff on Canada and Mexico.
The US Dollar has stabilized following weak US flash S&P Global Services PMI data for February, which showed a contraction in the services sector for the first time in 25 months. This steadiness in the Dollar has indirectly impacted Silver prices.
Ongoing geopolitical tensions, particularly surrounding peace talks related to the war in Ukraine, continue to influence the safe-haven demand for Silver. Recent discussions between French President Macron and Trump aim to secure military guarantees for Ukraine.
The Silver price retraced after failing to surpass a high of $33.40 earlier this month. The 50-day Exponential Moving Average indicates a bullish outlook, with key support around $30.00 from an upward trendline.
Market dynamics play a crucial role in Silver pricing, including geopolitical instability and industrial demand. Silver’s connection to Gold prices often dictates its movements, with the Gold/Silver ratio offering insights into relative valuations.
Silver’s recent downturn to around $32.00 is its third successive daily slide, suggesting that resistance remains firm at higher levels. This decline comes despite Donald Trump’s confirmation of fresh tariffs on Canadian and Mexican imports, a move that typically would have spurred safe-haven demand. The market reaction instead suggests that tariffs were already priced in, or that broader forces, such as currency movements, exerted greater influence.
The stabilisation of the US Dollar adds further pressure. February’s flash S&P Global Services PMI exposed a deterioration in the services sector—the first contraction in over two years. Although this pointed to potential economic weakening, the Greenback held steady. A firm Dollar tends to weigh on commodities priced in it, including Silver, making its downturn unsurprising given the prevailing conditions.
Meanwhile, developments surrounding Ukraine continue to play a role in shaping investor sentiment. Emmanuel Macron’s engagement with Trump to push for NATO security assurances for Ukraine adds another layer of geopolitical uncertainty. Historically, heightened tensions have reinforced Silver’s appeal, yet markets appear more focused on external drivers at the moment.
Technically, Silver struggled to maintain momentum beyond $33.40, leading to a pullback. The 50-day Exponential Moving Average still points to an underlying upward trend, with $30.00 acting as an essential support level. Unless that floor gives way, the broader bullish structure remains intact.
Market participants must also monitor the broader industrial demand for Silver, as shifts in manufacturing and green energy developments can alter the metal’s outlook. Its relationship with Gold remains relevant, particularly through the Gold/Silver ratio. A widening ratio often signals that Silver is lagging behind and could be undervalued in comparison.
These factors mean traders need to remain attentive to currency movements, geopolitical updates, and technical indicators in the weeks ahead.
