Silver finished Thursday’s trading session largely unchanged, maintaining a price of $33.65, close to its weekly high. Despite the stability, traders remain optimistic that the grey metal could continue its upward momentum in the coming days.
The silver market has been buoyed by the fall in US Treasury yields, which has exerted downward pressure on the US dollar. The US Dollar Index (DXY) dropped 0.50% to 99.28, providing support to precious metals. This movement in the currency markets is further compounded by uncertainty surrounding Federal Reserve policy.
The positive shift in risk sentiment, driven by the de-escalation of US President Donald Trump’s tariffs on China, has also contributed to silver’s strength. However, China’s Commerce Ministry spokesman has called for the complete removal of US tariffs on Chinese imports, urging a more comprehensive solution to trade tensions.
US economic data released this week has shown a solid labor market. The latest Initial Jobless Claims numbers aligned with expectations, and US Durable Goods Orders surged 9.2% month-over-month in March, well above the 2% forecast, driven by a significant increase in transportation orders.
Federal Reserve officials, including Governor Christopher Waller and Cleveland Fed President Beth Hammack, made headlines with their remarks on the uncertain economic outlook. Waller stated that it will likely take until July to fully understand the impact of the tariffs, while Hammack acknowledged that business uncertainty is affecting decision-making and indicated that the Fed may take action as early as June if necessary.
XAG/USD Price Outlook: Technical Analysis
Looking ahead, silver prices could stay near their weekly high, but for further gains, buyers will need to clear key resistance levels. The first target is $34.00, followed by the year-to-date high of $34.58. If these levels are breached, the next significant target could be $35.00.
On the downside, a drop below $33.00 would likely attract selling interest, with the 50-day Simple Moving Average (SMA) at $32.63 providing the next major support. A break below this level could see further declines towards the $32.00 mark.
