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Commodities Silver

Silver Price Rises Over $33 Amid Safe-Haven Demand Even as US Fiscal and Tariff Issues Bite

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  • May 23, 2025
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Silver prices have risen to over $33 per troy ounce, driven by increasing safe-haven demand with increased uncertainty about the US fiscal deficit and uncertainties surrounding tariffs affecting industrial demand. Even though it had dipped in recent times, silver’s attraction as a hedging asset balances issues affecting manufacturing units, such as the photovoltaic sector, that depend greatly on silver. President Trump’s “One Big Beautiful Bill” passage in the US House, expected to expand the budget deficit, and Moody’s lowering of the US credit rating are contributing to the market jitters. At the same time, industrial demand remains underpinned by strong growth in China’s and Europe’s renewable energy industries. KEY LOOKOUTS • Watch how the Senate reacts to Trump’s “One Big Beautiful Bill” and its impact on the US budget deficit, which will inform safe-haven demand for silver. • Watch additional credit rating news and debt projections, as declining fiscal health might push more investors to silver as a hedge. • Monitor trends in the photovoltaic and renewable energy industries, particularly in China and Europe, as these markets have a significant influence on silver industrial consumption. • Note any shifting in US-China trade relations and tariff policies, which may influence silver demand within manufacturing and industrial uses. Investors need to carefully monitor the Senate’s treatment of Trump’s “One Big Beautiful Bill” because its influence on the US budget deficit will shape safe-haven demand for silver. Moreover, Moody’s recent US credit rating downgrade indicates growing fiscal risks that could drive more investors towards precious metals as a hedge. Industrial demand continues to be important, as China’s and Europe’s growing renewable energy sectors continue to power silver usage. In the meantime, continued trade tensions and tariff issues between the US and major manufacturing allies such as China may press down on silver’s industrial consumption, complicating the metal’s price picture. Silver prices are bolstered by safe-haven demand as US fiscal worries rise and credit ratings get downgraded. Chinese and European renewable energy industrial demand is robust, but trade tensions and tariff issues remain threats to the outlook for silver. •  Silver price (XAG/USD) has surged past $33 per troy ounce, buoyed by safe-haven buying as a result of fiscal uncertainties. •  The US House of Representatives approved President Trump’s “One Big Beautiful Bill” that added $3.8 billion to the budget deficit. •  Fears surrounding the increasing US fiscal deficit and debt levels are keeping commodity prices, including silver, suppressed. • Moody’s lowered the US credit rating from Aaa to Aa1, citing increasing federal debt and expanding budget deficits. • Industrial use of silver, particularly by the photovoltaic and renewable energy sectors, continues to be firm due to expansion in Europe and China. • Trade tensions and tariff worries are eroding demand for silver in primary manufacturing industries. • Silver’s price direction is shaped by a combination of safe-haven demand and volatile industrial use in the midst of worldwide economic uncertainty. Silver is attracting notice as investors seek shelter with increasing worries regarding the United States’ fiscal stability. Recent political events, such as the approval of a large budget bill in the House of Representatives, are questioning the nation’s rising debt and deficit levels. These fiscal uncertainties are spurring demand for silver as a safe-haven asset, even when general challenges are affecting its industrial application. XAG/USD DAILY PRICE CHART CHART SOURCE: TradingView Meanwhile, silver still dominates in industries such as renewable energy, with robust expansion in solar and wind power in Europe and China bolstering demand. Yet, persistent tensions in trade and tariffs pose problems to the manufacturing industry, which is much dependent on silver. This mixture of circumstances makes it a complicated backdrop for silver, weighing against its attractiveness as a safe haven while acknowledging its industrial significance. TECHNICAL ANALYSIS Silver (XAG/USD) has crossed above the critical $33.00 resistance level, indicating fresh bullish pressure on the back of safe-haven demand. The price is now consolidating slightly above this mark, and it implies that investors are balancing the ongoing fiscal and trade uncertainty. Important levels to focus on are the $32.50 zone, which has resisted in the recent trading sessions, and resistance around $33.50, which may test the vigour of the current upward trend. Momentum gauges suggest guarded optimism, but any abrupt changes in US fiscal policy or industrial demand can rapidly impact price direction. FORECAST Silver prices may continue to increase if safe-haven demand increases amidst increasing fears about the US fiscal deficit and downgrades in the country’s credit rating. Higher geopolitical or economic uncertainty tends to increase investors’ interest in precious metals as a store of value. Also, robust industrial demand from growth in China’s and Europe’s renewable energy industries—particularly the photovoltaic industry—may further underpin silver prices in the medium term. Conversely, silver experiences downward pressure because of persistent trade tensions and tariff uncertainties that can suppress demand in major manufacturing industries. Should the economic conditions in the US stabilize or should the Senate adjust fiscal policies to alleviate deficit concerns, safe-haven demand for silver can get decimated. Additionally, any slowdown in industrial growth or diversion to other materials in manufacturing will also cut down the consumption of silver, capping its price appreciation.

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Commodities Silver

Silver Price Falls to $32 as Ceasefire Hopes and US Downgrade Weigh

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  • May 20, 2025
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Prices for silver have fallen to the $32 an ounce level amid increased hopes of a possible ceasefire between Russia and Ukraine, damping safe-haven demand. This was in spite of the fact that the metal’s losses were partly supported by Moody’s downgrade of the US sovereign credit rating, which indicates fears about the rise in debt and fiscal issues. Also, softer US inflation data and poor retail sales lifted expectations for rate reductions by the Federal Reserve this year, introducing additional complexity to silver’s short-term outlook as investors balance geopolitical events against economic indicators. KEY LOOKOUTS • Observe how developments or reversals in Russia-Ukraine ceasefire negotiations impact silver’s safe-haven demand and price action. • Watch for continued US credit rating developments and additional downgrades that may influence investor sentiment and precious metals. • Watch for upcoming Fed speeches and data releases that may reinforce or change market expectations for 2025 interest rate reductions. • Follow inflation reports, retail sales, and other economic releases that may add credibility or undermine silver’s attractiveness as a hedge against economic instability. Investors should closely monitor several factors that could shape silver’s price trajectory in the coming weeks. Progress in Russia-Ukraine ceasefire negotiations remains a critical driver, as any breakthrough could reduce safe-haven demand and weigh on prices. Meanwhile, further developments regarding the US sovereign credit rating, especially potential additional downgrades, may impact market confidence and support precious metals. Federal Reserve policy cues will also be instrumental, with future speeches and economic reports releases affecting rate cut expectations during 2025. US inflation and retail sales data will still remain important in dictating silver’s attractiveness in the face of general economic uncertainty. Important points to observe are developments in Russia-Ukraine ceasefire negotiations, which will alleviate safe-haven demand for silver. Further, news regarding the US credit rating and Federal Reserve policy directions will drive investor attitude and direction. Economic releases on inflation and retail sales will also affect silver’s future. • Prices of silver are declining towards $32 due to hopes over possible Russia-Ukraine ceasefire negotiations. •  Geopolitical tensions subside, weakening safe-haven demand for silver. •  Moody’s recent reduction of the US sovereign credit rating is only partially mitigating silver’s decline. • Weaker US inflation data supports Federal Reserve rate cuts in 2025 expectations. •  Disappointing US retail sales dampen economic growth expectations, potentially supporting silver. • Markets are expecting two Fed rate cuts this year, which are likely to start in September. • Future Fed speeches and economic releases will be pivotal for silver’s short-term direction. Silver prices have eased recently in the face of increasing expectations of a ceasefire between Ukraine and Russia. This is alleviating geopolitics tensions, which have historically fueled demand for safe-haven metals such as silver. Meanwhile, there are still worries over the US economy, with recent statistics pointing to slowing growth and easing inflation, which causes investors to closely monitor economic policy shifts. XAG/USD DAILY PRICE CHART CHART SOURCE: TradingView Additionally, driving the market is Moody’s downgrading of the US credit rating, which indicates long-term fiscal problems. Although this action has brought some hesitation, investors are also eyeing coming indicators from the Federal Reserve and overall economic patterns. Collectively, these factors form a complicated backdrop to silver, as global events and economic conditions continue to influence its allure. TECHNICAL ANALYSIS Silver (XAG/USD) has been trending below major support levels at $32.50, indicating bearish pressures in the short term. The price of the metal is heading towards the $32.00 psychological support, which traders will be keeping an eye on for possible buying interest or a breakdown. Moving averages are treading downwards, and momentum indicators are indicating diminishing buying pressures. But any undoing of geopolitical tensions or change in economic statistics can precipitate technical rebounds, and thus the $32 level becomes a key pivot point in the near future. FORECAST Prices for silver could rebound in case geopolitical tensions erupt again, especially if ceasefire negotiations between Russia and Ukraine falter or break down. Fresh uncertainty tends to lift demand for safe-haven assets such as silver. Also, if future US economic data are disappointing or inflation proves sticky, investors would look to silver as a haven against economic uncertainty. Any signal from the Federal Reserve that rate cuts are going to be postponed or less aggressive than anticipated would also favor silver prices. Downside-wise, movements towards a peaceful settlement between Russia and Ukraine could continue to mitigate safe-haven demand, further pressuring silver prices. Enhanced global economic conditions or better-than-anticipated US data may diminish the metal’s popularity as a non-yielding asset. Additionally, stabilization or enhancement of the US credit rating may revive investor trust in conventional markets and put pressure on precious metals. Finally, a more rapid pace of Federal Reserve rate increases or postponed cuts will most likely make silver less desirable, resulting in continued falls.

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Commodities Silver

Silver Price Forecast: XAG/USD Outlook with Bullish Technical Setup and Crucial Support Levels

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  • April 25, 2025
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Silver (XAG/USD) has eased back from a three-week high recently, trading at the mid-$33.00s, after breaking above the $33.00 level in an aggressive move earlier this week. The technical setup is still bullish despite the recent dip, with oscillators indicating positive momentum and further upside potential. Any dip will tend to draw in dip-buyers, particularly around the $33.00 support level. A drop below this support might change the outlook to a more bearish direction with the next support levels at $32.40 and $32.00. On the higher side, the near-term resistance at $33.70 might open the door to even more gains, likely taking the XAG/USD to the $34.00 mark and higher, with the $35.00 psychological level coming into view. KEY LOOKOUTS • A key support level has emerged around $33.00, with a break below this mark potentially triggering a decline toward the $32.40 and $32.00 levels. Watch for any dip-buying near this support zone. • The immediate resistance at $33.70 could be pivotal for silver’s price action. A breakout above this level may pave the way for further gains toward $34.00 and higher targets. • Oscillators on the daily chart are showing positive momentum, indicating that silver could maintain an upward bias, provided it doesn’t experience significant selling pressure. • The $35.00 mark remains a key psychological resistance level. If silver continues its bullish momentum, reaching this level could mark the next significant hurdle, especially following a breakout above $34.00. Silver (XAG/USD) is having a mild retracement after it hit a three-week high in the early part of this week. The metal is trading at the mid-$33.00s, and the $33.00 level is an important point to observe. A move below this support may result in further declines to $32.40 and $32.00. But the technical setup overall is still bullish, as oscillators are indicating bullish momentum, and this week’s breakout above $33.00 has created hope among traders. The $33.70 level is the near-term resistance, and a possible breakout above it can lead to the $34.00 zone. If the trend remains bullish, silver can potentially target the $35.00 psychological level in the future, and thus it is a level to watch in the future sessions. Silver (XAG/USD) is ranging in the mid-$33.00s following a recent breakout, with crucial support at $33.00 and resistance at $33.70. A breakdown below $33.00 may portend more weakness, while a surge above $33.70 may clear the way to $34.00 and higher. • Silver (XAG/USD) is ranging in the mid-$33.00s following a recent retreat from a three-week high. • The $33.00 level is key support, and a break below it might send the price down toward $32.40 and $32.00. • Oscillators on the daily chart indicate positive momentum, which supports a bullish near-term outlook. • The near-term resistance at $33.70 might cap further gains unless overcome. • A breakout above $33.70 might set the stage for silver to move toward the $34.00 level. • The $35.00 level continues to be a significant psychological resistance level to look for major moves higher. • Any price drop towards $33.00 should find dip-buyers stepping in to support the uptrend. Silver has caught headlines recently after it traded at close to the mid-$33.00s, after its fleeting spike to a three-week peak earlier in the week. There is optimistic market sentiment still prevailing, given how most of its traders believe in the possibilities for silver’s continuity in being upward-bound. Events such as international economic volatility and investor interest in precious metals would likely still see demand driving demand for silver upwards, supporting its price stability to this range. XAG/USD DAILY CHART PRICE CHART SOURCE: TradingView Moving forward, the future price action of silver will be based on general market conditions and investor sentiment. Since silver is considered a safe-haven asset, its price can be affected by any changes in the global financial environment, including inflation rates or geopolitical issues. As retail and institutional investors increasingly show interest in silver, it can continue to be a good choice for investors looking to hedge against market volatility. TECHNICAL ANALYSIS Silver (XAG/USD) has demonstrated good bullish potential following the break above the $33.00 level, which served as a major resistance level. The price is testing the three-week high, and oscillators are reporting positive momentum, implying that silver may extend its upward trend in the short term. Nonetheless, the early resistance at $33.70 might become an obstacle to more upside, with the $33.00 now being converted to support, becoming an important level to hold onto the bullish direction. A decline below here would mean a change in market direction, while continued strength would move silver towards $34.00 and $35.00 levels. FORECAST Silver (XAG/USD) is poised for further gains at this point, with important resistance at $33.70 and $34.00. A break over $33.70 is likely to lead to further bullishness and could take the price of silver to levels of $34.30 and $34.55. A further move above $34.00 has a good chance to establish silver reaching the $35.00 psychological level, which would be a key achievement. Bullish technical indicators and a positive market sentiment for precious metals indicate that silver may continue to find buyers, especially in a climate of economic uncertainty or heightened demand for safe-haven assets. Conversely, silver is at risk on the downside if it drops below the $33.00 support level. A breakdown below this important level may indicate a change in market sentiment, forcing the price towards lower supports of $32.40 and $32.00. This may cause additional bearish pressure, particularly if there is a broader market movement away from precious metals. If silver is unable to hold on to the current support, it could mean that the recent bounce from $28.00 has run out of steam, and more losses are ahead.

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Commodities Silver

Silver Price Drops: Trump Trade Policies, Fed Rumors Continue Shaping XAG/USD

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  • January 21, 2025
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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

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