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Commodities Silver

Silver Skyrockets: XAG/USD Hikes to $31 with Trump’s Comments and Weak US Dollar

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  • January 24, 2025
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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.

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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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Commodities Silver

XAG/USD Technical Setup Signals Caution Despite Recent Silver Price Gains

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  • January 15, 2025
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Silver (XAG/USD) has managed to reclaim the $30.00 mark, which drew some buying interest for the second consecutive day. However, despite the recent bounce, the overall technical setup suggests caution for bullish traders. The price has been following a well-established downtrend, marked by a descending channel since the October highs near $35.00. Oscillators on the daily chart still haven’t bounced back with strong positive momentum even if it’s rebounding from bearish territory; thus, any upward momentum might be challenged. The most important levels of interest will be at $30.45, then the 100-day Simple Moving Average at around $31.00. A strong thrust above those will probably terminate the recent correction and set it in motion towards higher gains. Conversely, failure to overcome these obstacles could again push XAG/USD lower down with renewed force, particularly if mid-$29.00s support gives way. KEY LOOKOUTS • XAG/USD resistance is seen at $30.45, at the top of the descending channel and a level where an upside breakout or reversal can occur. • The 100-day SMA stands at $31.00 and is also acting as a level of resistance, suggesting more price appreciation is likely if broken. • The mid-$29.00s offers initial support; a breakdown below there could be the catalyst for a fresh leg lower, to $28.75-$28.70. Silver (XAG/USD) has reclaimed the $30.00 level but the technical perspective is still not optimistic. Resistance is seen close to $30.45-the top of the descending channel-while further barriers are seen in the 100-day SMA near $31.00. A sustained break above those levels could reverse the trend. However, failure to clear these resistance levels and a dip below the mid-$29.00s support could lead to renewed downside pressure, making it important for traders to monitor these key levels closely. Silver (XAG/USD) is testing resistance near $30.45 and the 100-day SMA at $31.00. A break above these levels could signal further upside, while support at mid-$29.00s remains crucial for downside risk. • XAG/USD is capped on the upside around $30.45, the upper side of the falling channel. • The 100-day Simple Moving Average at $31.00 is a next key resistance level for silver. • A support level exists around the mid-$29.00s. A break below this level might signal further downward momentum. • The price remains in a falling channel, signifying a trend well established, and little room for short-term upside. • Daily chart oscillators have come out of bearish territory but do not have strong bullish momentum. • Break above $31.00 could signal the end of the corrective decline and open up more upside. • Drop below mid-$29.00s support would confirm further weakness, with a potential target of $28.75-$28.70 support Silver (XAG/USD) has managed to recover above the $30.00 mark, attracting buying interest for the second consecutive day. However, the technical setup should warn the bullish traders. The price has been in a channel, breaking down since the October peak near $35.00. So, the downtrend is rather solid. The latest uptick was neutral for the oscillators on the daily chart, and there was no strong bullish momentum. The price has approached resistance near $30.45, at which the upper boundary of the descending channel was met. Another obstacle lies close to the 100-day Simple Moving Average at $31.00, which may become an important barrier in case of further upside. Should silver be able to break through the resistance levels outlined above, this could be an indication that the corrective phase has ended and opens the way for further increases. Targets are likely to remain at $31.70 and the $32.00 mark, but the December swing high around $32.30-$32.35 is the final resistance. Downside support could be found immediately in the mid-$29.00s and a break of this level will lead to increased selling pressure again. In such a case, silver is expected to test levels around $28.75-$28.70, confirming additional downward momentum. Traders should pay close attention to these technical levels to identify the next possible move in XAG/USD. TECHNICAL ANALYSIS Silver (XAG/USD) has reclaimed the $30.00 level, which is a short-term bounce, but the overall technical view is to be cautious. The price is testing resistance at the upper boundary of the descending channel near $30.45, which has been a consistent barrier since the October highs. This channel indicates a well-established downtrend, thus limiting the upside potential in the near term. Oscillators on the daily chart have recovered from bearish territory but remain neutral, which suggests that silver lacks strong bullish momentum. The 100-day Simple Moving Average (SMA), currently just above $31.00, will be an important resistance point. A break and sustained move above $31.00 would indicate the end of the corrective decline and open the door for further upside, potentially targeting the $31.70 level and the $32.00 mark. On the downside, immediate support is found around the mid-$29.00s, specifically from Monday’s low. A break below this support level could reinforce the bearish setup and send silver prices back toward the $28.75-$28.70 region, marking the December lows. XAG/USD Daily Price Chart Sources: TradingView, Prepared by ELLYANA FORECAST Silver (XAG/USD) may remain bullish if the price can penetrate the resistance area. The immediate strong resistance stands at $30.45, the top side of the descending channel. If silver prices break through this level, the next one is at the 100-day Simple Moving Average (SMA) around $31.00. A break above $31.00 would be a sign that the corrective decline might be ending and could lead to further upside, with the $31.70 and $32.00 levels the next targets of interest, and the December swing high near $32.30-$32.35 the next significant resistance. The downside support in the mid-$29.00s is present and a break below this region will reinforce the bearish sentiment. Silver might drift toward the $28.75-$28.70 zone, which are the December lows. Pressure below this support level may further indicate that the broader downtrend is intact and that it can test even lower levels. A sustained break below $28.70 may open up the gates for deeper losses and confirm a more prolonged bearish phase.

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