XAG/USD dips toward $32 despite resurfacing concerns over Trump’s tariff plans
FUNDAMENTAL OVERVIEW:
- Silver price slides toward $32.00 despite President Trump reaffirming the 25% tariff plan on Canada and Mexico.
- Meanwhile, the US Dollar holds steady as markets absorb weaker US flash S&P Global Services PMI for February.
- Investors await further updates on Ukraine peace negotiations.
Silver (XAG/USD) extends its losing streak for the third consecutive session, slipping toward $32.00 during European trading on Tuesday. Despite President Trump confirming that the delayed 25% tariffs on Canada and Mexico will proceed as scheduled on March 4, the white metal remains under pressure.
Trump had initially postponed the tariffs after securing commitments from North American partners to enforce stricter border controls against fentanyl trafficking and illegal immigration. The move is expected to elevate political risks and weigh on the global economy—typically a supportive backdrop for safe-haven assets like silver.
Meanwhile, a stabilizing US Dollar has added to silver’s weakness. The greenback is recovering from an 11-week low as markets digest weaker-than-expected US flash S&P Global PMI data. Notably, the Services PMI contracted for the first time in over two years, reflecting concerns about economic momentum.
Looking ahead, investors will closely monitor Russia-US peace negotiations aimed at ending the Ukraine war, now in its fourth year. Rising geopolitical tensions continue to bolster silver’s safe-haven appeal.
SILVER TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Silver is trading within a up channel.
Silver is moving above 10&50 Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Neutral trend.
Immediate Resistance level: 32.43
Immediate support level: 31.50
HOW TO TRADE SILVER
Silver prices pull back after failing to surpass the February 14 high of $33.40 on Thursday. Despite the retracement, the overall outlook for the white metal remains bullish, supported by the upward-sloping 50-day Exponential Moving Average (EMA), which hovers around $31.40. Currently, Silver is trading near a key support zone and is showing signs of rejection from this level. As long as it holds above the support zone, the potential for further upside remains intact.