Select Language

Silver Price Forecast: XAG/USD explodes above $34 on US tariff turmoil

Breaking news

Silver Price Forecast: XAG/USD explodes above $34 on US tariff turmoil

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.03.28 06:51
Silver Price Forecast: XAG/USD explodes above $34 on US tariff turmoil

update 2025.03.28 06:51

  • Silver clears $34.23 resistance, eyes last year's high at $34.86 and potentially $35.00 for first time since 2012.
  • US auto tariffs trigger global uncertainty, fueling strong demand for safe-haven metals like Silver.
  • Key support now at $34.00; breakdown may expose $33.51 and psychological $33.00 level.

Silver price rallies sharply on Thursday, clears the $34.00 mark as uncertainty about US trade policies, regarding 25% tariffs in all cars, increased appetite for the precious metal. As of writing, the XAG/USD trades at #34.38, up over 2.20%

XAG/USD Price Forecast: Technical outlook

On Wednesday I wrote "After registering a solid rally on Tuesday, Silver failed to break the $34.00 mark, which opened the door for sellers." Finally, buyers stepped in and pushed Silver's price higher, clearing the previous year-to-date (YTD) high of $34.23, opening the door to test last year's high at $34.86. On further strength, the grey metal could reach $35.00, a level last seen in October 2012. Next key resistance levels lie at $37.49, the February 2012 peak, and the August 2011 swing high of $44.22.

Conversely, if XAG/USD slips beneath $34.00, immediate support emerges at the March 26 low of $33.51. Once hurdled, the next stop is $33.00.

XAG/USD Price Chart - Daily

Silver FAQs

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.

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.

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.

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.

 


Date

Created

 : 2025.03.28

Update

Last updated

 : 2025.03.28

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Fed's Kugler: Higher than expected tariffs likely to send prices higher

Federal Reserve Board Governor Adriana Kugler said late Tuesday that with US import tariffs significantly larger than expected and likely to put upward pressure on prices, the Fed ought to keep short-term borrowing costs unchanged until inflation risks recede, per Reuters.
New
update2025.04.23 07:36

GBP/JPY afloat near 189.00 amid risk jitters, bearish bias prevails

GBP/JPY trades modestly higher near 189.00 during Tuesday's session after bouncing from intraday lows around 187.47. The pair's upside follows a minor recovery in the Pound Sterling, which briefly reached 1.3423 against the US Dollar before retreating amid political and economic crosswinds.
New
update2025.04.23 06:57

US President Trump eases market jitters, says no plans to fire Powell, China tariffs to be lower

Recently, US President Donald Trump said at a press conference that his discussions with China are going well, adding that he thinks they will reach a deal. He said that tariffs on China would not be as high as 145%, but they wouldn't be zero.
New
update2025.04.23 06:44

EUR/JPY Price Analysis: Drifts near 162.00 as technical picture turns indecisive

The EURJPY pair is currently neutral, trading near the 162.00 zone after easing slightly on Tuesday. The pair remains confined within a narrow range between 160.98 and 162.32, showing no clear directional bias as Asian markets approach.
New
update2025.04.23 06:34

USD/CHF bounces over 1% as trade optimism lifts mood, but Powell tensions linger

The USD/CHF makes a U-turn and trade with gains of over 1% on Tuesday as market mood improved on trade headlines and a possible de-escalation of US-Sino conflict tensions. At the time of writing, the pair trades at 0.8181 after hitting a daily low of 0.8065.
New
update2025.04.23 06:30

AUD/JPY Price Analysis: Trades soft near 90.10 zone with bearish outlook intact

The AUDJPY pair is flashing an overall bearish signal, currently trading around 90.10 after a modest dip during Tuesday's session. The cross remains mid-range between the day's low of 89.64 and high of 90.58, suggesting hesitation in either direction as markets await fresh momentum into Asia.
New
update2025.04.23 06:10

USD/JPY clings to 142.00 as Fed uncertainty and Yen strength weigh

The USD/JPY pair struggles to regain ground on Tuesday, trading around the 142.00 mark during North American hours after bouncing off earlier lows near 140.65.
New
update2025.04.23 05:30

Australian Dollar holds steady near 0.6400 despite renewed USD strength

The Australian Dollar (AUD) trades with a modestly bullish tone on Tuesday, consolidating near the 0.6400 region during North American trading hours.
New
update2025.04.23 04:34

Forex Today: It is PMI-day!

The Greenback managed to regain strong upside traction and bounced off recent three-year lows vs.
New
update2025.04.23 04:25

Fed's Kashkari: Can't allow inflation expectations to get unanchored

Minneapolis Fed President Neel Kashkari warned that US tariffs act as a drag on economic growth and emphasised the central bank's responsibility to prevent those trade measures from fuelling longer-term inflation.
New
update2025.04.23 03:25

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel