Silver Price Nears $32.48 Breakout as Safe-Haven Demand Surges on Trade Jitters

Silver (XAG/USD) is bouncing after 4 days of losses, currently at $32.25 in early Monday trading. The bounce comes as geopolitical concerns (U.S.-China trade talks) are back in play and investors are seeking safe-haven assets.

China’s Commerce Ministry has acknowledged a U.S. proposal to restart trade talks, in line with President Trump’s comments that talks are underway. But he said there are no immediate plans to meet President Xi Jinping. This has added more uncertainty to the markets and silver is in demand.

Meanwhile the U.S. Dollar is weakening, making silver cheaper for international buyers. A weaker dollar is a short-term positive for silver. The dollar is weakening due to trade concerns and Trump’s proposal to impose 100% tariff on foreign-made films, further escalating global tensions.

Economic Clouds Over Industrial Demand

Despite the short-term bounce, silver’s industrial demand outlook is still shaky. Recent data from both the U.S. and China show economic slowdown. U.S. economy contracted 0.3% in Q1 – its first quarterly decline in 3 years – and is raising concerns about domestic momentum.

China’s National Bureau of Statistics (NBS) reported its manufacturing PMI fell to 16 month low, with export orders seeing the biggest drop since 2022. Silver, which is both a financial asset and an industrial metal, may be pulled in opposite directions as macro forces compete.

All eyes now on the U.S. Federal Reserve’s policy decision. Markets expect rates to be steady but any dovish language or surprises can impact silver. Monday’s ISM Services PMI will also be watched for fresh cues on the economy.

Silver Technical Outlook: Can Silver Clear $32.48?

From a technical perspective, silver is testing a key zone. Price is bouncing from $32.03 and heading towards $32.46 and the 50 period EMA near $32.48. MACD is turning positive but confirmation is pending.

Trade Setup:

• Entry (Bullish): Close above $32.48

• Targets: $32.77 → $33.11

• Entry (Bearish): Rejection below $32.46

• Targets: $32.03 → $31.66

• SL: Just beyond the breakout/rejection point

Wait for a close and volume confirmation before entering. This bounce may be an opportunity—but only if it clears the resistance.