Silver Price Forecast: XAG/USD clings to gains above $32 as traders brace for Trump’s reciprocal tariffs
LONDON (February 13) Silver price (XAG/USD) holds onto gains near Wednesday’s high around $32.30 in Thursday’s European session. The white metal remains firm amid uncertainty that United States (US) President Donald Trump will announce reciprocal tariffs on Thursday.
The White House said on Wednesday that US President Donald Trump could announce his reciprocal tariff plan before he meets with Indian Prime Minister Narendra Modi on Thursday.
Such a scenario would deepen fears of a global trade war, which will boost the safe-haven appeal of precious metals, such as Silver.
In the election campaign, Trump said that he would implement a policy of “an eye for an eye, a tariff for a tariff, same exact amount.”
Meanwhile, the market sentiment is risk-on as leaders of Russia and Ukraine have agreed to peace talks after a three-year-long war. The Silver price had a strong rally when Russia and Ukraine entered a war.
Apart from the uncertainty over Trump’s tariffs, the Silver price clings to gains due to weakness in the US Dollar (USD). Risk-on market mood due to Russia-Ukraine peace talks has weighed heavily on the US Dollar, with the US Dollar Index (DXY) declining to near 107.50.
The US Dollar weakens even though the hot US Consumer Price Index (CPI) report for January has boosted expectations that the Federal Reserve (Fed) will keep interest rates in the current range of 4.25%-4.50% for longer. Technically, higher interest rates for longer bodes poorly for the Silver price.
Silver technical analysis
Silver price continues to face pressure near the immediate resistance of $32.50, which is plotted from the December 9 high. The outlook of the white metal remains bullish as it holds above the 50-day Exponential Moving Average (EMA), which trades around $30.95.
The 14-day Relative Strength Index (RSI) falls back inside the 40.00-60.00 range, suggesting that the momentum is not bullish for now. However, the upside bias is intact.
Looking down, the upward-sloping trendline from the August 8 low of $26.45 will be the key support for the Silver price around $29.50. While, the October 31 high of $33.90 will be the key barrier.
FXStreet
