Silver prices (XAG/USD) dropped to approximately $33.15 during the early European session on Thursday, as traders engaged in profit-taking following recent gains. However, the potential for further downside appears limited, with market sentiment still being influenced by US President Donald Trump’s announcement of new global tariffs on Wednesday. This development has fueled concerns about a widening trade war, which in turn supports demand for safe-haven assets like silver.
Technical Outlook for Silver Despite the pullback, the bullish trend in silver remains intact, as the price continues to trade above the key 100-day Exponential Moving Average (EMA). The 14-day Relative Strength Index (RSI), however, remains near the neutral midline, indicating a lack of strong momentum in the near term and suggesting that further consolidation could be in the cards.
Resistance and Support Levels On the upside, the immediate resistance for silver is seen at $34.23, the high from March 18. Should the price surpass this level, the next resistance zone to watch is between $34.60 and $34.70, which corresponds to the March 28 high and the upper boundary of the Bollinger Bands. A decisive break above this area could open the door for a move toward the psychological $35.00 level.
On the downside, the first support target is $32.66, the low from March 21. A sustained move below this level could see silver prices drop toward the 100-day EMA at $31.89. If selling pressure continues, the next key support is at $30.82, the low from February 28.
