Dollar Softness Lends Support to Silver
The U.S. dollar index dipped 0.6%, hitting a two-week low, bolstering silver’s appeal to foreign investors by making it more affordable in other currencies. Later in the session, the dollar recovered slightly after President Trump floated a potential 25% tariff on imports from Mexico and Canada. Despite this rebound, silver maintained support as traders sought safe-haven assets amidst growing economic and geopolitical risks.
Trade Policy Uncertainty Fuels Safe-Haven Demand
Trump’s tariff rhetoric extended beyond North American trade partners, with suggestions of measures against China if a TikTok-related deal falls through. Such actions could escalate trade tensions, potentially disrupting global markets and increasing silver’s appeal as a hedge.
Historically, tariffs on China have heightened concerns over supply chain disruptions and slowed economic activity, factors that often spur demand for precious metals like silver.
Meanwhile, U.S. Treasury yields declined as traders digested Trump’s slew of executive orders and their implications for economic stability. This decline reinforced risk-off sentiment, drawing further interest in silver and gold as safe-haven assets.
Market Forecast: Key Levels to Watch for Silver
Silver’s next significant move hinges on a break above the $30.98 resistance level, which could drive prices toward the $31.81–$32.33 zone. Ongoing tariff uncertainty—especially regarding China—adds to silver’s safe-haven demand, but traders should also monitor U.S. economic data, such as PMI releases and housing statistics, for potential catalysts. On the downside, breaching the 200-day moving average could trigger increased selling pressure.
For now, silver’s resilience reflects its dual role as an industrial metal and a hedge against market instability, keeping traders focused on its technical and fundamental drivers.
