Silver Price Forecast: XAG/USD surges to near $32.30 as Trump tariffs trigger safe-haven demand
LONDON (February 10) Silver price (XAG/USD) soars to near $32.30 in Monday’s European session. The white metal strengthens as investors turn risk-averse after United States (US) President Donald Trump threatens to raise 25% tariffs on imports of steel and aluminum and reciprocal tariffs over nations where he sees unfair trade practices.
Technically, the scenario of heightened global tensions improves the safe-haven bid of precious metals, such as Silver.
The appeal of the US Dollar (USD) also strengthened after Trump’s tariff warnings on metals, but later, it surrendered its entire gains. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, retreats to near 108.10 from the intraday high around 108.50 and is almost flat at press time. The Silver price has also benefitted from the retracement in the US Dollar.
President Trump’s tariff threats have renewed fears of a global trade war. However, a league of market participants still believe that Trump is using tariffs as a tool to have better negotiations against the US’s trading partners.
Going forward, investors will focus on Federal Reserve (Fed) Chair Jerome Powell’s testimony before the House of Representatives on Tuesday and Wednesday. They will look for cues about how long the Fed will keep interest rates in the current range of 4.25%- 4.500%.
Silver technical analysis
Silver price strives to break above the immediate resistance of $32.50, which is plotted from the December 9 high. The outlook of the white metal remains bullish as the 20-day Exponential Moving Average (EMA) is sloping higher near $30.90.
The 14-day Relative Strength Index (RSI) oscillates in the 60.00-80.00 range, suggesting that the momentum is bullish.
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
