Silver Price Slips to $32.59 as CPI, Tariff Truce Cloud XAG/USD Outlook

Silver (XAG/USD) is trading at $32.59 after failing to break above $32.97—a level that is now resistance. The pause in US-China trade tensions has taken away one of silver’s recent tailwinds. Over the past year silver rallied to multi-year highs on economic uncertainty, central bank buying and inflows into precious metal ETFs. But now the market is recalibrating as risk assets are getting optimistic.

The US dollar is still strong making dollar denominated metals less attractive to international buyers.

CPI Report A Modest Tailwind For XAG/USD

The latest CPI report showed US inflation rose 0.2% in April—below expectations of 0.3%. This has brought back hopes for a September rate cut. Historically lower rates are good for non-yielding assets like silver as it reduces the opportunity cost of holding them.

Kitco Metals analyst Jim Wyckoff said the CPI was “slightly friendly for precious metals” as it doesn’t force the Fed to ease. Markets are now pricing in 53 basis points of cuts in 2025.

Silver bounced to $32.89 after the CPI release and platinum rose 1.4% to $985.92 and palladium 1% to $955.15 but failed to hold above $32.97 resistance zone indicating indecision among traders.

Silver (XAG/USD) Trade Setup: Range or Break?

Technically silver is consolidating in a symmetrical triangle. Price has dropped below the 50 period EMA at $32.69 and MACD is showing loss of bullish momentum.

Here’s a simple trade setup:

• Sell Entry: Below $32.28

• Target 1: $32.00

• Target 2: $31.95

• Stop Loss: Above $32.72

Or a break above $32.97 could take it to $33.22 and $33.51. But wait for volume confirmation or a MACD crossover to confirm the trend. Until then XAG/USD is range bound and sideways strategies will work.

Fed Chair Jerome Powell speaks Thursday and PPI data tomorrow. Watch $32.28 and $32.97.