Silver prices extended their rally this week, buoyed by growing expectations of Fed rate cuts as recent US labor market data pointed to a slowdown. Weaker job numbers have added to the case for a dovish shift in monetary policy, pressuring the US dollar and making non-yielding assets like silver more attractive.
Geopolitical tensions also boosted safe-haven demand. US President Trump's move to double tariffs on Indian goods, in response to India's continued imports of Russian oil, has heightened uncertainty in global trade. Reports that Trump may meet Russia's President Putin next week to discuss ending the Russia-Ukraine conflict have only added to the geopolitical premium in silver prices.
Meanwhile, political speculation around Fed leadership is beginning to influence sentiment. Trump is expected to nominate a replacement for outgoing Fed Governor Adriana Kugler and is reportedly shortlisting candidates to succeed Jerome Powell when his term is over. The prospect of a more dovish Fed under new leadership has weakened the dollar and offered further support to silver.
From a technical perspective, XAGUSD rebounded above the lower bound of its ascending channel, suggesting the bullish momentum is intact. If the price continues to climb, a break above the 39.50 resistance could open the door to an extended move toward 41.50, which aligns with the channel's upper bound and the 127.2% Fibonacci extension. However, if prices break below key support at 36.00, this would suggest fading momentum and could trigger a deeper retracement toward 34.50.
Geopolitical tensions also boosted safe-haven demand. US President Trump's move to double tariffs on Indian goods, in response to India's continued imports of Russian oil, has heightened uncertainty in global trade. Reports that Trump may meet Russia's President Putin next week to discuss ending the Russia-Ukraine conflict have only added to the geopolitical premium in silver prices.
Meanwhile, political speculation around Fed leadership is beginning to influence sentiment. Trump is expected to nominate a replacement for outgoing Fed Governor Adriana Kugler and is reportedly shortlisting candidates to succeed Jerome Powell when his term is over. The prospect of a more dovish Fed under new leadership has weakened the dollar and offered further support to silver.
From a technical perspective, XAGUSD rebounded above the lower bound of its ascending channel, suggesting the bullish momentum is intact. If the price continues to climb, a break above the 39.50 resistance could open the door to an extended move toward 41.50, which aligns with the channel's upper bound and the 127.2% Fibonacci extension. However, if prices break below key support at 36.00, this would suggest fading momentum and could trigger a deeper retracement toward 34.50.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.