Silver (XAG/USD) falls below $31.00 trading at $30.90 during early European hours, losing 1.30% as the US Dollar surges on back of new tariffs by Trump. The bull scenario remains intact above the 100-period EMA, but neutral RSI might suggest consolidation. The key support areas are at $30.60 and $30.40 with a psychological support at $30.00. On the upside, resistance can be seen at $31.72, while further resistance levels are near $31.90-$32.00. The market sentiment remains cautious due to global trade tensions.
KEY LOOKOUTS
• The initial resistance is at $31.72, with stiffer barriers around $31.90-$32.00, which coincides with the Bollinger Band’s upper limit and psychological levels.
• Escalating US trade tensions and Trump’s tariff policies boost the US Dollar, which in turn exerts pressure on silver prices and market sentiment.
• Silver is still above the 100-period EMA, but the neutral RSI indicates a sideways move, which may be a consolidation before the next significant move.
• Silver’s main support is at $30.60, then at $30.40 and $30.00; any break below can lead to more downside momentum.
Pressure below $31.00 as a stronger US Dollar, supported by Trump’s tariff measures, is weighing on silver (XAG/USD). Key supports remain at $30.60 and $30.40 while the resistance at $31.72 and at $31.90-$32.00 is a key. Even though it’s falling, silver remains above the 100-period EMA and remains in a bullish trajectory. However, the neutral RSI signals that it may have consolidation before taking off. The two factors still weighing on the metal in the short term include global trade tensions and strength of the USD.
Silver (XAG/USD) is trading under $31.00 as the US Dollar gets a boost by Trump’s tariffs. Key support is at $30.60, while resistance is at $31.72. The neutral RSI makes it possible to consolidate before moving further.
• XAG/USD is trading around $30.90, which has lost 1.30% as the US Dollar has gained strength.
• New trade measures are fueling USD gains and adding selling pressure on silver.
• Watch $30.60, $30.40, and the psychological $30.00 level for the potential downside.
• A break higher can lead to prices toward $31.90-$32.00.
• Silver manages a closure above the 100-period EMA following the recent decline.
• The RSI remains neutral, which means range-bound action before moving out either way.
• Focus is on the US Dollar strength or weakness on the basis of trade war concerns.
Silver fell below the $31.00 level, trading around $30.90 as the US Dollar surged after President Trump introduced new tariffs. The growing fears of a global trade war have been adding selling pressure on silver despite its bullish technical outlook. The metal remains above the 100-period EMA, indicating underlying strength, but the neutral RSI signals possible consolidation before a clear directional move. Key support levels to watch are $30.60 and $30.40, with further downside risk if silver falls below the psychological $30.00 mark.
XAG/USD Daily Price Chart
Sources: TradingView Prepared by ELLYANA
One strong resistance level is found at $31.72, with a much stronger resistance identified at the $31.90-$32.00 region at the upper Bollinger Band. Breaking levels above this strong resistance may confirm new highs for silver. However, market sentiment remains soft and bearish with respect to growing strength by the US Dollar and the state of the global economy. Traders will watch for new economic data releases and geopolitical news to drive silver’s next move forward.
TECHNICAL ANALYSIS
Its short-term technical picture remains positive in spite of recent weakness below $31.00, as it remains above the 100-period EMA in a very robust support area. The RSI is centered, which may hint at a pause before a larger move. For now, $30.60 is the initial support level; it coincides with the 100-period EMA. On the downside, $30.40 and then $30.00 are critical levels. On the positive side, resistance is observed at $31.72 and then at the area of the $31.90-$32.00 area, which coincides with the upper Bollinger Band. Breakout above this area would be a basis for further bullish pressure; a break below significant support will change the trend to bearish.
FORECAST
Silver (XAG/USD) has a bullish forecast as long as it stays above the 100-period EMA, that is serving as strong support at the moment. A rebound from the $30.60 level could push prices toward the immediate resistance at $31.72. If silver breaks above this, the next target lies in the $31.90-$32.00 region, which coincides with the upper Bollinger Band. A decisive breakout beyond $32.00 could open the door for further gains, potentially testing higher resistance levels in the coming sessions. Positive market sentiment or a weaker US Dollar could further fuel the rally.
Despite overall bull structure, silver has downside risks if it fails to hold above key support at $30.60. A slide below this level could lead to more selling, but upside targets would be the next downside target at $30.40 and then the psychological $30.00 level. If the selling pressure increases, then silver may touch the $29.50 low of January 13. If the trade tensions or the US economic data strengthens the US dollar, then silver may experience more extended losses in the short term.
