Silver Price Forecast: XAG/USD holds early gains driven by US trade policy uncertainty

熱門文章

Silver price (XAG/USD) trades 2.13% higher to near $86.50 during the European trading session on Monday. The white metal strengthens as the United States (US) Supreme Court ruling against President Donald Trump’s tariff policy has revived trade uncertainty.

Silver price surges over 2% to near $86.50 amid uncertainty over the US trade policy’s outlook.
The US Supreme Court struck down President Donald Trump’s tariff policy.
US-Iran tensions continue to provide support to the Silver price.

Theoretically, the safe-haven appeal of the Silver price increases in highly uncertain market conditions.

On Friday, the US SC accused President Trump of overstepping his authority by using the International Emergency Economic Powers Act (IEEPA) to back his tariff agenda and blocked so-called reciprocal tariffs, calling them “illegal”.

The US SC’s verdict against Trump’s tariffs has resulted in a sharp decline in the US Dollar (USD). As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.35% lower to near 97.45.

Technically, a lower US Dollar makes the Silver price an attractive bet for investors.

Apart from the US trade policy uncertainty, tensions between the US and Iran over the nuclear programme in Tehran are also supporting the Silver price. Last week, a report from the Wall Street Journal (WSJ) showed that President Donald Trump is weighing a limited military strike on Iran to pressure Tehran to agree to a nuclear deal.

Silver technical analysis

XAG/USD surges to near at $86.50 during the press time. Price holds above the 20-day EMA at $82.78, which has stabilized and begun to turn higher. This configuration supports a recovery bias towards the February 4 high of $92.21.

Looking down, the psychological level of $70.00 will remain a key support area for Silver price bulls.

The 14-day Relative Strength Index (RSI) continues to wobble inside the 40.00-60.00 range, demonstrating that the broader trend is still sideways.

(The technical analysis of this story was written with the help of an AI tool.)

Silver FAQs

Why do people invest in Silver?

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Which factors influence Silver prices?

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.

How does industrial demand affect Silver prices?

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.

How do Silver prices react to Gold’s moves?

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.