The Silver price, quoted as XAG/USD, is currently traded near $31.00 per troy ounce, amid various geopolitical events and economic reasons. Recent comments from US President Donald Trump on optimism for a China trade deal, in addition to his request for the Federal Reserve to reduce interest rates, are the major drivers that increased the demand for non-interest-bearing assets like Silver. Second, the weakening US Dollar and decrease in the yields of Treasury further strengthened the uptrend momentum of Silver. With ongoing uncertainties regarding US-China trade negotiations as well as new proposed tariffs with Canada, Mexico, and the European Union, traders are scrambling into safe-haven assets. Combining this together with industrial demand by China, precious metals are still trading at a premium.

KEY LOOKOUTS

• Silver prices shot up on Friday due to a weakened US Dollar and after President Trump portrayed a positive outlook for US-China trade talks.

• President Trump’s remarks of demanding an instant Fed cut and President Trump’s positive tone about US-China trade talks with China have exponentially placed demand for safety in Silver.

• A DXY drop below 107.00 and Treasury yields lower led to pushing the prices of non-yielding assets, such as Silver, up in the global market.

• Hopefulness in US-China trade talks will bring increased industrial demand in Silver as China is the world’s largest consumer of metals and manufacturing hub.

Silver prices, XAG/USD have increased to nearly $31.00 per troy ounce on geopolitical optimism and some economic shifts. Latest comments of President Trump that there is hope for trade agreement between US and China, in addition to his fresh demand for immediate Federal Reserve rate cut have really fostered this growing demand for non-yielding assets, including Silver. The US Dollar does currently remain weak as the Dollar Index DXY descends below 107.00 even as Treasury yields continue to fall. Industrial demand for Silver may also rise as China, the world’s largest consumer of metals, could benefit from improved trade relations, driving further strength in the precious metal.

Silver prices (XAG/USD) rose to near $31.00 per troy ounce as President Trump’s positive comments on US-China trade talks, a weaker US Dollar, and declining Treasury yields fueled the rally. The move is attributed to rising safe-haven and industrial demand for the precious metal.

• XAG/USD rises near $31.00 per troy ounce, recovering recent losses.

• Optimism on US-China trade talks boosts safe-haven demand for Silver.

• Dollar Index (DXY) falls below 107.00, supporting Silver prices.

• US Treasury yields drop, enhancing the appeal of non-yielding assets like Silver.

• Trade optimism strengthens industrial demand for Silver, especially from China.

• Trump’s call for immediate Federal Reserve rate cuts drives market sentiment.

• Proposed tariffs on Canada, Mexico, and the EU add to market uncertainty, favoring safe-haven investments.

Silver prices (XAG/USD) surged close to $31.00 per troy ounce during Friday’s Asian trading session, driven by a blend of economic and geopolitical factors. President Trump’s optimistic comments about US-China trade negotiations and his call for immediate Federal Reserve rate cuts have sparked increased demand for safe-haven assets like Silver. The precious metal also gained from a weakening US Dollar, with the Dollar Index (DXY) falling below 107.00, and lower US Treasury yields. These factors have enhanced the appeal of non-yielding assets, providing a strong foundation for Silver’s rally.

XAG/USD Daily Price Chart

Source: TradingView Prepared By ELLYANA

Trade optimism could further enhance industrial demand for Silver since China is the world’s biggest consumer of metals and might resume manufacturing activities with improved trade conditions. Trump’s claims about avoiding tariffs with China and placing tariffs on Canada, Mexico, and the EU have kept world markets in caution, and such anxiety has continued safe-haven demand. Given that market participants keenly watch US-China relations and actions by the Federal Reserve on policy, silver is in a prime position to keep rising even in an increasingly uncertain global economy.

TECHNICAL ANALYSIS

Silver (XAG/USD) has been on a healthy bullish run, breaking key resistance areas near $30.50 and getting close to the psychological area of $31.00. The upward trajectory is supported by rising moving averages, where the 50-day MA crosses above the 200-day MA, forming a bullish golden cross pattern. Momentum indicators such as the Relative Strength Index (RSI) hover near overbought territory, suggesting sustained buying interest but also caution for potential pullbacks. Additionally, the Fibonacci retracement levels show $31.00 as a critical area of resistance, with further upside targeting $31.50 and $32.00. Support lies around $30.00, and a break below might invite bearish pressure. Traders are looking for consolidations to confirm their next directional move.

FORECAST

Silver prices (XAG/USD) can be expected to continue higher on the back of supportive macroeconomic factors: a weakening US Dollar and a decreasing Treasury yield. The psychological level of $31.00 is a resistance; a firm breakout above the level may pave way to $31.50 and $32.00. Positive development on US-China trade talks with China, that is the silver’s largest customer, also shows positive industrial demand increases prices. It is supported from the short-to-medium term as the golden cross pattern and tremendous buying momentum make it bullish on technical indicators.

With the bullish momentum being very strong, Silver might also be on the lookout for potential pullbacks with overbought conditions showing on the RSI, and this pullback could be toward the $30.50 support area if the metal can’t hold it up at the $31.00 area. Otherwise, a better-than-expected US economic report or some hawkish comments from Fed officials would be further strengthening the US Dollar to continue hurting Silver prices. Further downside risks are driven by reduced safe-haven demand if geopolitical uncertainties ease or if industrial demand expectations weaken. Key support levels to watch include $30.00 and $29.50, where buyers may look to re-enter the market.