Usman Salis
Silver (XAG/USD) is trading around $36.70 on Tuesday, staying close to 13-year highs as Trump's new tariff threats on 14 countries spark fresh safe-haven buying interest.
XAG/USD Consolidates as Trade Tensions Heat Up
Silver is holding steady near $36.70, just slightly down on the day but still sitting pretty close to those 13-year highs we've been seeing. The precious metal has been getting a boost from safe-haven demand as investors react to President Trump's latest tariff announcements.
Trump just rolled out updated tariff rates for 14 countries that haven't managed to strike trade deals with the US yet. The big news here is that major trading partners like Japan and South Korea are now looking at hefty 25% tariffs. On top of that, Trump signed an executive order pushing back the reciprocal tariff deadline from July 9 to August 1, giving negotiators more time but keeping those trade tensions simmering.
While these trade worries are definitely supporting silver prices, the metal isn't exactly shooting to the moon. That's because stronger-than-expected US jobs data last week has made traders think the Fed might hold off on cutting interest rates anytime soon. A stronger dollar and higher rate expectations are putting a bit of a lid on precious metals right now.
Silver (XAG/USD) Technical Picture Shows Sideways Action
For the past four weeks, Silver has been stuck in a sideways pattern between $35.50 and $37.30. It's basically been a waiting game for traders after that strong rally we saw in early June. The price is still sitting above the 20-day moving average at $36.42, which is also the middle line of the Bollinger Bands and acting as support.
The Bollinger Bands are starting to squeeze together, which usually means volatility is about to pick up and we might see a breakout soon. The momentum indicators are showing cautious optimism - the RSI is hovering around 60 (not overbought but showing some buying interest) and the Rate of Change is at +1.21, indicating mild upward momentum.
Key XAG/USD Levels to Watch
If Silver can close above $37.30 on a daily basis, that would confirm a bullish breakout and could send prices toward $38.00 and potentially $39.00 in the near term.
On the flip side, the first support level is around $36.42 (that middle Bollinger Band line). If that breaks, we'd be looking at the lower Bollinger Band near $35.72, which also marks the bottom of the current trading range. A break below that could target $34.50, signaling a deeper pullback.
Right now, Silver is caught between competing forces - trade tensions supporting prices but Fed policy expectations keeping gains in check. The metal's next big move will likely depend on how trade negotiations develop and whether the Fed's stance shifts.
Usman Salis
