Silver Price Forecast: XAG/USD flattens around $34, Trump's tariffs in focus

• Silver price trades sideways around $34.00 as investors await the release of a detailed reciprocal tariff plan by US President Trump on Wednesday.
• Trump tariffs will result in a downgrade of global economic growth, including the US.
• Fed Daly's confidence has declined in her expectations of two interest rate cuts this year.

Silver price (XAG/USD) wobbles around $34.00 in Monday's European session. The white metal trades flat as investors have sidelined to have a clear view on global economic outlook, with United States (US) President Donald Trump to unveil reciprocal tariffs on Wednesday.

Donald Trump is set to announce reciprocal levies on so-called "Liberation Day" after which tariffs be equivalent charged by other nations on the US for same products. The impact of reciprocal tariffs is expected to be significant on the global economic growth. The appeal of precious metals, such as Silver, increases amid heightening global economic tensions.

Investors expect Trump tariffs will also weaken the US economic growth, given that the impact of higher tariffs will be borne by US importers. This will also result in a resurgence in inflationary pressures.

Fears of US economic risks and accelerating price pressures in the near term have forced federal Reserve (Fed) officials to maintain a restrictive monetary policy guidance. On Friday, San Francisco Fed Bank President Mary Daly expressed that her confidence is easing in her expectations that there will be two interest rate cuts this year. Her confidence on two interest rate cuts this year shaken after the release of the US core Personal Consumption Expenditure Price Index (PCE) data for February, which accelerated at a faster-than-expected pace of 2.8% compared to estimates of 2.7% and the former release of 2.6%.

Historically, firm expectations for the Fed's higher-for-longer interest rate stance weigh on non-yielding assets, such as Silver.

Silver technical analysis

Silver price advances toward 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 $33.30 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