XAG/USD hovers below $33 as investors await progress in US-China trade talks
FUNDAMENTAL OVERVIEW:
- Silver prices steadily rose to nearly $32.50 as markets awaited new developments in U.S.-China trade negotiations.
- The White House remains optimistic about the trade agreement, while tensions between Trump and Fed Chair Powell continue to weigh on the US Dollar.
Silver (XAG/USD) is trading flat around the $32.50 mark during European hours on Tuesday, maintaining a sideways trend for the past three sessions. The market appears to be holding as investors await new developments in the ongoing trade dynamics between the United States and China.
Earlier this month, U.S. President Donald Trump unexpectedly announced a 90-day suspension of reciprocal tariffs, although significant duties on Chinese goods remain in place, prompting retaliatory measures on American imports.
Despite the tensions, Washington remains hopeful about the progress of trade negotiations. “We’re confident it will work out with China,” said U.S. Commerce Secretary Howard Lutnick over the weekend.
Investors remain cautious about the state of U.S.-China trade relations, as the conflict between former President Trump and Beijing appears to be rooted more in national pride than in tariff levels. A prolonged standoff between the two economic giants could continue to benefit safe-haven assets like silver. Historically, precious metals have shown strong performance during periods of heightened global economic uncertainty.
Last week, White House Press Secretary Karoline Leavitt noted that President Trump is open to negotiating a trade deal with China—but emphasized that the initiative must come from Beijing. “The ball is in China’s court: China needs to make a deal with us, we don’t have to make a deal with them,” Leavitt stated, according to Reuters.
At the same time, escalating tensions between Donald Trump and Federal Reserve Chair Jerome Powell over interest rate policy have weighed heavily on the U.S. Dollar (USD). From a technical standpoint, a weakening dollar enhances silver’s appeal, making it an attractive value investment for market participants.
XAG/USD TECHNICAL ANALYSIS CHART:
Technical Overview:
XAG/USD is trading within an up channel.
XAG/USD 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: 33.15
Immediate support level: 32.13
HOW TO TRADE XAG/USD
After a strong upward move, silver faced resistance and saw a sharp pullback. However, it quickly rebounded from a key support zone. At present, the metal is approaching a critical resistance level but is encountering selling pressure near the upper boundary. The price action has stalled and is now turning lower toward the immediate support area. If this support level fails to hold, it could open the door for further downside movement.