Silver Price Forecast: XAG/USD clings to gains below $34 on Trump tariff woes

• Silver price grips gains as uncertainty over the global economic outlook due to the Trump-led trade war.
• US individuals are cautious over economic prospects under Trump's leadership.
• Investors await the US PCE inflation for a fresh Fed monetary policy outlook.

Silver price (XAG/USD) holds onto gains near $33.80 in European trading hours on Wednesday. The white metal shows resilience as market participants are cautious over the United States (US) economic outlook under the leadership of President Donald Trump.

Fears of imposition of potential tariffs by Donald Trump on April 2 have dented the confidence of households in the economy. The US Conference Board reported on Tuesday that the Consumer Confidence, a leading indicator of individuals' confidence in economic prospects, declined to 92.9, significantly lower than 100.1 seen in February. The scenario of heightened economic uncertainty often leads to an increase in the safe-haven demand of non-yielding assets, such as Silver.

However, Trump has teased that not all impending tariffs will come into effect on April 2 as he may give a "lot of countries" breaks on tariffs.

Meanwhile, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades sideways around the three-week high of 104.50. The US Dollar is expected to trade cautiously as investors expect Trump's economic policies could result in an economic slowdown and a resurgence in inflationary pressures in the US economy.

This week, the major trigger for the US Dollar will be the US Personal Consumption Expenditure Price Index (PCE) data for February, which will be released on Friday. The inflation data will influence market expectations for the Federal Reserve's (Fed) monetary policy outlook. The Silver price carries an inverse relationship with the degree of US interest rates.

Silver technical analysis

Silver price strives to revisit the flat border of the Ascending Triangle chart pattern formation on the daily timeframe near the October 22 high of $34.87. The upward-sloping border of the above-mentioned chart pattern is placed from the August 8 low of $26.45. Technically, the Ascending Triangle pattern indicates indecisiveness among market participants.

The 20-day Exponential Moving Average (EMA) near $33.10 continues to provide support to the Silver price.

The 14-day Relative Strength Index (RSI) rebounds above 60.00, suggesting a resurgence in bullish momentum.

Looking down, the March 6 high of $32.77 will act as key support for the Silver price. While, the October 22 high of $34.87 will be the major barrier.

Silver daily chart