Silver Price Forecast: XAG/USD faces pressure around $34, Trump tariffs remain key

• Silver price trades with caution around $34.00, with investors focusing on the release of reciprocal tariffs by US President trump on Wednesday.
• Trump's tariffs are expected to shrink economic growth across the globe.
• The USD Index edges higher ahead of the US ISM Manufacturing PMI and the JOLTS Job Openings data.

Silver price (XAG/USD) trades cautiously around $34.00 in Tuesday's North American session. The white metal continues to face selling pressure above $34.00 since Friday as investors seek clarity over the level of tariffs to be announced by United States (US) President Donald Trump on Wednesday or so-called "Liberation Day".

According to the Washington Post, the White House aides have drafted a proposal to impose 20% tariffs on most imports to the US.

The imposition of significant levies by US President Trump is seen as resulting in significant economic shocks across the globe. Such a scenario bodes well for safe-haven assets, such as Silver.

Investors expect that Trump's tariffs will also impact the US economy, given that the burden of higher import duties will be borne by domestic importers. This has escalated risks of a resurgence in inflationary pressures in the near term. Fears of an acceleration in price pressures have led Federal Reserve (Fed) officials to continue maintaining a restrictive monetary policy stance for a longer period.

Meanwhile, investors await the US ISM Manufacturing Purchasing Managers' Index (PMI) data for March and the JOLTS Job Openings data for February, which will be published at 14:00 GMT. Economists expect the Manufacturing PMI to have declined to 49.5 from 50.3 in February. US employers are estimated to have posted 7.63 million jobs in February, slightly lower than the prior release of 7.74 million.

Ahead of the US economic data, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades slightly higher to near 104.30.

Silver technical analysis

Silver price struggles to advance its upside move towards 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 $33.40 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