Silver prices traded cautiously around $30.50, as the US Dollar bounced strongly after US President Donald Trump’s reiteration of plans to increase tariffs, but the hike has been delayed. Despite the fact that the strength in the Dollar- a two-week low for the DXY-borne pressure on precious metals, falling bond yields somewhat mitigated the risk off atmosphere for Silver as it lessened the cost of holding non-yielding assets. The 10-year US Treasury yield dipped to 4.56%, with traders speculating a possible Federal Reserve rate cut in May. Technically, Silver faces resistance near $30.80, with buyers finding support at the 200-day EMA around $29.45. The 14-day RSI near 60.00 hints at potential bullish momentum if breached, but market sentiment remains cautious.

KEY LOOKOUTS

• US Dollar’s rally, fueled by President Trump’s delayed tariff hike plans, is still putting pressure on Silver prices, which remains inversely related to the Greenback.

• Lower bond yields and a 53% chance of a Fed rate cut in May are supporting Silver prices as the Dollar strength is balanced.

• Silver struggles at $30.80; the 14-day RSI at 60.00 suggests a possible bullish trend if it breaks above this significant technical level.

• Decreasing 10-year US Treasury yields, currently at 4.56%, enhance the attractiveness of Silver as a non-yielding asset, hence supporting a timid but steady demand.

Silver prices (XAG/USD) are moving through a very complicated market landscape, trading near $30.50, as the US Dollar’s rebound exerts downward pressure following President Trump’s announcement of delayed but intact tariff hike plans. The Dollar’s recovery, based on DXY rising from a two-week low, continues to test precious metals, making the metals costlier to investors. On the downside, bond yields decline with 10-year US Treasury yields falling to 4.56%, where traders begin to look forward to the possibility of an FOMC-led Federal Reserve rate cut in May. Technical-wise, Silver does fight at $30.80, however strength in its buying interest does exist near the 200-day EMA at $29.45, while the 14-day RSI doing near 60.00 does indicate the possibility for positive momentum when this level is broken. Market sentiment being generally cautious, people look into the Fed policy event calendar along with general trading flows.

Silver prices (XAG/USD) trade around $30.50 as a rebounding US Dollar, responding to Trump’s tariff policy stance, puts on pressure. Still, falling bond yields and speculations over Fed rate cuts provide a cushion. Resistance is still capped at $30.80, with the 200-day EMA remaining a significant buying trigger at $29.45.

• Silver (XAG/USD) trades cautiously near $30.50, capped on the upside at $30.80 and supported below at the 200-day EMA at $29.45.

• The US Dollar Index (DXY) recovered from a two-week low, forcing Silver to become expensive for investors.

• President Trump confirmed that tariff hike plans are delayed but still intact, fueling the strength of the Dollar and impacting market sentiment.

• The 10-year US Treasury yield fell to 4.56%, reducing the opportunity cost of holding non-yielding assets like Silver.

• Market expectations for a Fed rate cut in May are easing, with a 53% probability now priced in, down from 63% last week.

• The 14-day RSI is hovering near 60.00, which could be a potential bullish momentum if broken, but the current market indecision is limiting upward moves.

• Traders are cautiously balancing the impact of Dollar strength, Fed policy outlook, and declining yields on Silver’s near-term trajectory.

Silver prices (XAG/USD) are trading near $30.50, finding a tight-rope balance between a surging US Dollar and increasing supports from plunging bond yields. A two-week low in the US Dollar Index (DXY) prompted a sharp rebound after President Donald Trump confirmed delayed but still-intact tariff hike plans. The news has essentially made silver an expensive metal for investors, further downward pressure on the white metal. However, after the 10-year US Treasury yield drops further to 4.56% it mitigates Silver’s drift down, as lesser yields have decreased the cost of opportunity for holding non-yielding assets. The metal is further supported by the Federal Reserve’s policy outlook as traders have priced in a 53% probability of a rate cut in May – below 63% a week ago, which has generally reflected the risk-averse market sentiment.

SILVER Daily Price Chart.

 Source: TradingView Prepared By ELLYANA

On the technical side, Silver is facing resistance around $30.80, which is in line with an upward-sloping trendline. Buyers are still active around the 200-day EMA at $29.45, creating a robust support zone. The 14-day Relative Strength Index (RSI) remains under pressure at 60.00, indicating a potential bullish breakout if surpassed. For now, the metal’s trajectory remains tied to external factors, including further developments in US trade policies, the Fed’s monetary stance, and the broader performance of the Dollar. Investors are advised to monitor these key drivers as the market remains finely poised between conflicting forces.

TECHNICAL ANALYSIS

Silver (XAG/USD) is showing cautious movement near the resistance level of $30.80, which aligns with a significant upward-sloping trendline. The 200-day Exponential Moving Average at $29.45 offers strong support, where buying pressure has repeatedly been initiated into the market. Yet, it fails to sustain above the 50-day EMA at $30.30. It shows a failure to gain more strength in terms of bullish conviction. The 14-day Relative Strength Index is found at 60.00 and can be used to indicate a likely break for bullish strength, but shows indecision as of now. A breakout above $30.80 could signal a continuation of the uptrend, while a failure to hold above $30.30 may lead to a deeper pullback toward the support zone at $29.45.

FORECAST

Silver (XAG/USD) could experience a bullish breakout if it successfully breaches the resistance at $30.80, a level reinforced by the upward-sloping trendline. The 14-day RSI, currently near 60.00, suggests potential for renewed buying momentum if it moves decisively higher. A robust break above this resistance might set the stage for higher levels, and the next potential target of $31.50 could be in play. Falling bond yields and market speculation that the Federal Reserve might actually cut rates in May also would be good supportive factors that could push Silver up in the near term.

On the flip side, Silver is susceptible to another drop if it fails to hold above the 50-day EMA at $30.30. A breach below that could take the metal back to retest the 200-day EMA at $29.45, which would be a very significant support level. The US Dollar strength could be exacerbated further by the delay in the still-intact plans by President Trump to hike tariffs. If the Dollar Index DXY continues its rebound, Silver could come under more pressure, possibly driving it down to the $28.80 level in a deeper corrective phase.