Silver Spikes From $32 to Test $33.08—Here’s Why Traders Are Watching Closely

Silver (XAG/USD) has jumped from $32.00 to over $33.08 in a big intraday move as geopolitical tensions and shifting Fed expectations fire up the metals. Trump is ramping up the trade war, announcing 100% tariffs on foreign films and floating pharmaceutical tariffs in two weeks.

Tariff fears are bringing back safe-haven buying into silver especially as broader markets get choppy. But it’s not just noise driving this move—the technicals are aligning with the bullish momentum.

Silver has broken above its 50-period EMA on the hourly chart and is pushing up against the downtrend line from late April. This is also supported by an ascending triangle—often a sign of building pressure before a breakout.

Fed Decision Looms as Dollar Gains

The bigger picture however could complicate silver’s upside. As the dollar strengthens ahead of the Fed decision on Wednesday, silver’s price in dollars could face resistance. A stronger dollar makes metals more expensive for foreign buyers and often limits demand.

The Fed is expected to keep rates steady but traders are more interested in Powell’s tone. Trump is calling for rate cuts and inflation and trade uncertainty is weighing on global outlooks.

Adding another layer of complexity is the US-China trade narrative. While Bessent hinted at progress, Trump ruled out a meeting with Xi this week. That leaves room for uncertainty—a silver friendly short term.

Silver Trade Setup: $33.47 and Beyond

Silver is testing the big resistance at $33.08. Here’s the simple setup:

Entry: Buy if silver closes above $33.10

Targets: $33.47 and then $33.69

Stop-loss: Below $32.83

This breakout setup assumes a sustained move above the trend line will attract new buyers and flip the structure from bearish to bullish. But if silver stalls here the resistance zone could remain intact and trigger a pullback.

Takeaways:

• Silver rallies from $32 to $33.08 as tariff talk sparks demand

• Fed/Powell to move dollar

• $33.08 trendline

• MACD but manage risk