Silver Price Forecast: XAG/USD Eyes $96 as Tariff Tensions and RSI Surge Fuel Rally

Quick overview

Silver (XAG/USD) is trading at $93.25, recently jumping as investors scramble to lock into safe-haven assets following Donald Trump’s bombshell announcement that he’s slapping new tariffs on eight European nations – all in a bid to buy Greenland. This move has really set alarm bells ringing, as people worry it could be the start of a much broader trade dispute between the US and Europe, which is sending silver demand through the roof.

Now, one of the big reasons silver is doing so well right now is that it’s got a reputation as a safe-haven & industrial metal, which means its price is on the rise as investors use it to hedge against market volatility. It even outperformed gold on a percentage basis, hitting a record high of $94.03/oz. To make matters worse for other assets, we’re seeing a rise in geopolitical tensions & growing expectations that the Fed will cut interest rates, which is only adding fuel to silver’s bullish story.

Silver (XAG/USD) Technical Analysis: A Rising Channel & a Bullish Narrative

On the 4-hour chart for XAG/USD, the price is zooming upwards within a rising price channel, with support at higher lows and a resistance ceiling just above $93.57. The last candle really shows what happened – it pushed off a low of $92.63 with a great deal of force, and the indicators are really saying this is a bullish move.

[[XAG/USD-graph]]

Trading Levels: It’s worth watching these key levels:

• Upside Resistance: $93.57, $96.70, $100.75
  • Downside Support: $87.95, $83.65, $80.44
• RSI & Moving Averages: the RSI is currently at 62.26, which is just below the moving average of 58.39; both the short & long term MAs are going up

The RSI is rising – but it’s not yet so high that we can rule out further price gains. If we break through $93.57, watch out for $96.70 & then $100.75 as potential targets – but if we can’t hold above $92.63, we might see a test of lower support levels in the channel.

Silver’s Macro Story is Even More Bullish

This isn’t just about technicals – the fundamental picture is strong for silver too. In addition to gold, it’s getting a lift from:

• Tensions between the US & Europe (tariffs, Middle East conflicts, etc.).
• Rate cuts from the Federal Reserve
• Industrial demand from the clean energy & electronics sectors
• ETF inflows & institutional buying

And to top it all off, we have lower inflation & central banks shifting to a more dovish stance, making non-yielding assets like silver more attractive.

Gold Trade Setups & Outlook

For now, the bias is definitely to the upside, but it’s still pretty volatile. Consider:

• Buying above $93.57, with a stop-loss just below $92.63 & a target of $96.70.
• Selling below $92.63 with a stop-loss above the higher resistance & a target of $87.95.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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