XAG/USD rises above $32.50, supported by renewed safe-haven demand
FUNDAMENTAL OVERVIEW:
- Silver prices climb as persistent uncertainty over U.S. trade policy drives safe-haven demand.
- A weaker U.S. Dollar further supports the metal, making it more attractive to international buyers.
- Additionally, President Trump has urged an investigation into possible tariffs on critical mineral imports.
Silver (XAG/USD) is edging higher, recovering from recent losses and trading around $32.95 per ounce during Wednesday’s Asian session. This increase is driven by continued uncertainty over U.S. trade policy, boosting safe-haven demand for the precious metal.
A weaker U.S. Dollar (USD) also supports silver, making the dollar-denominated asset more appealing to international buyers. The U.S. Dollar Index (DXY) is trading lower at approximately 99.80. Attention is now shifting to the upcoming U.S. Retail Sales data for March, which may offer insights into how tariff tensions are impacting consumer spending.
Safe-haven interest in silver was further strengthened after U.S. President Donald Trump called for an investigation into potential tariffs on critical mineral imports. This move signals a tougher trade stance, heightening the risk of tensions with key suppliers like China, while partially offsetting optimism from recent exemptions on some tech products and possible exclusions for auto parts.
Federal Reserve Governor Christopher Waller sought to ease market concerns, stating that any inflation resulting from tariffs is likely to be temporary. He also reiterated the Fed’s readiness to cut interest rates if necessary, underscoring the central bank’s commitment to supporting economic growth. Investors are now awaiting the U.S. retail sales report and a speech from Fed Chair Jerome Powell later in the day for further guidance on the economic and monetary policy outlook.
XAG/USD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
XAG/USD is trading within a up channel.
XAG/USD is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 33.15
Immediate support level: 31.90
HOW TO TRADE XAG/USD
Silver experienced a significant rise before facing rejection at higher levels, causing the price to drop sharply. However, the downside was capped due to strong support level, and the price made another attempt to rally, moving sharply upward. Currently, Silver has broken the previous day’s high and is trading near a key resistance zone. If this resistance is breached, further upside potential could be in store.