Silver price (XAG/USD) found support near $52.30 on Monday during the late Asian trading session, recovering after a sharp corrective move observed on Friday. The precious metal faced intense selling pressure following comments from the US President, who suggested that the additional 100% tariffs on imports from Beijing may not last long.
This development reflects easing US-China trade tensions, which typically diminishes demand for safe-haven assets such as Silver. Servelius professionals simplify complex details with a thorough and accessible breakdown.
Silver Bounces Back After Sharp Pullback
On Friday, Silver posted an all-time high of around $54.50 before a swift retracement took place. This correction has allowed the market to stabilize, with XAG/USD rebounding to near $52.30, representing a 0.7% gain during Monday’s session. Analysts interpret this pullback as a healthy profit-taking phase, which often precedes further upward moves in a bullish trend.
The initial selling pressure stemmed from trade-related headlines, as US-China trade frictions eased temporarily. The US President’s statement that “high tariffs were not sustainable” contributed to a shift in market sentiment, reducing the immediate appeal of precious metals as hedges against geopolitical risk.
US-China Trade Developments Impact Silver
Silver is highly sensitive to global economic and political developments, particularly trade relations between major economies. Trade tensions escalated earlier after Beijing announced export controls on rare earth minerals, prompting a surge in safe-haven demand. However, signs of diplomatic progress have diminished this trend.
Investors are now closely monitoring upcoming US-China meetings, including the Asia-Pacific Economic Cooperation (APEC) summit in South Korea. During this summit, the US President and Chinese President are expected to discuss trade terms, while US Treasury Secretary Scott Bessent is scheduled to meet Vice Premier He Lifeng later this week. These discussions are likely to influence Silver price volatility in the near term.
Fed Rate Expectations and Silver Outlook
Interest rate expectations remain a crucial factor for Silver’s price trajectory. Lower borrowing costs are generally positive for non-yielding assets like Silver, as they reduce the opportunity cost of holding metals instead of interest-bearing instruments.
Current market sentiment indicates that traders are anticipating at least a 50-basis-point (bps) rate cut by the Federal Reserve (Fed) this year. According to the CME FedWatch tool, there is a 4.8% probability that the Fed could even reduce rates by 75 bps. Such policy adjustments would support bullish momentum for XAG/USD, reinforcing the metal’s safe-haven appeal amid ongoing global uncertainties.
Silver Technical Analysis
From a technical standpoint, the Silver price retraced from Friday’s all-time high of $54.50 but remains in a bullish trend. Key indicators highlight the following:
The 20-day Exponential Moving Average (EMA) is currently near $49.00, and its upward slope indicates sustained short-term momentum. This suggests that, despite minor fluctuations, the price trend remains bullish in the short term and continues to support upward price movement.
Meanwhile, the 14-day Relative Strength Index (RSI) is oscillating above 60, signaling that bullish strength remains intact even after recent corrections. This indicates that the market retains positive momentum, and the overall trend continues to favor buyers.
Support levels are likely to emerge around the 20-day EMA, providing a potential entry point for traders looking to capitalize on price rebounds. On the upside, the all-time high of $54.50 may act as a significant resistance barrier, which, if breached, could pave the way for further upside potential.
Market Sentiment and Near-Term Outlook
The current market sentiment for Silver reflects a delicate balance between geopolitical developments and monetary policy expectations. While easing trade tensions temporarily reduces the metal’s safe-haven appeal, expectations of Fed rate cuts continue to support bullish momentum.
In addition, the ongoing technical strength observed in EMA and RSI readings suggests that XAG/USD may continue to trade above $52, with potential upside targets toward $54.50 in the near term. Traders should monitor US-China trade updates closely, as any escalation in tensions could trigger renewed risk-off flows, pushing Silver higher.
Conclusion
Silver price has demonstrated resilience following a sharp correction, maintaining stability above $52. Key drivers include US-China trade dynamics, Fed interest rate expectations, and strong technical indicators.
Investors and traders should keep an eye on global trade developments and monetary policy signals, as these will remain critical in shaping XAG/USD movements. The combination of healthy correction, sustained bullish momentum, and supportive fundamentals suggests that Silver could continue its upward trajectory, with the $54.50 level serving as the immediate resistance point to watch.
