Silver (XAG/USD) experienced upward momentum, approaching $33.85 during Wednesday’s Asian session. The prevailing positive outlook for silver is supported by its position above the 100-day EMA and a bullish RSI indicator. Immediate resistance is observed at $34.23, with initial support at $32.92.
The price of silver attracted buyers, reaching approximately $33.85 in early European trading. Concerns regarding potential tariffs imposed by former US President Donald Trump, which could escalate global trade tensions and potentially trigger economic deceleration, are driving safe-haven demand, thereby bolstering silver prices. Market participants are anticipating President Trump’s announcement regarding reciprocal tariffs.
Technically, the bullish trend for silver remains intact, as the commodity is well-supported above the 100-day EMA on the daily chart. The 14-day RSI, positioned above the midline near 57.80, reinforces this upward momentum, indicating near-term bullish sentiment.
The initial upside target is identified at $34.23, the high from March 18. Further gains could potentially lead to a rally towards the $34.60-$34.70 range, representing the high from March 28 and the upper Bollinger Band boundary. The $35.00 psychological level serves as an additional upside threshold.
Conversely, the first downside target is located at $32.92, the low from March 25. A sustained breach below this level could result in a decline towards the next support level at $31.86, the 100-day EMA. Further selling pressure could expose $30.82, the low from February 28.
Silver is considered a precious metal and is frequently traded by investors as a store of value and medium of exchange. Investors may diversify their portfolios with silver, recognizing its intrinsic value and potential as a hedge against inflation. Silver can be acquired physically or traded through ETFs.
Silver prices are influenced by various factors, including geopolitical instability, recessionary fears, and interest rate movements. A weaker US Dollar typically supports silver prices, while a stronger Dollar tends to suppress them. Industrial demand, mining supply, and recycling rates also play a role.
Industrial demand significantly impacts silver prices, particularly in sectors like electronics and solar energy. Economic dynamics in the US, China, and India can contribute to price fluctuations due to their industrial consumption and consumer demand for silver jewelry.
Silver prices tend to correlate with gold prices, reflecting their shared status as safe-haven assets. The gold/silver ratio can provide insights into the relative valuation of the two metals, potentially indicating whether silver is undervalued or gold is overvalued.
