Silver Eyes $33.24 Breakout as U.S.-China Trade Talks Heat Up

Silver is sitting at $32.50, testing a key resistance zone as traders digest the latest news. With a tightening wedge and new trade...

Quick overview

  • Silver is currently testing a key resistance zone at $32.50 as traders await news on trade deals.
  • Recent trade agreements between the US and UK have reduced tariffs, but a 10% US tariff on British goods limits silver's upside potential.
  • Technical analysis indicates that a breakout from the current wedge pattern is imminent, with key resistance levels at $32.58, $32.94, and $33.24.
  • Traders should consider a buy setup if silver breaks above $32.58, with risk management strategies in place.

Silver is sitting at $32.50, testing a key resistance zone as traders digest the latest news. With a tightening wedge and new trade deals on the horizon, silver’s next move could be big.

Silver Holds Steady Amid Trade Deal Hopes

Silver (XAG/USD) is right below the 50 EMA at $32.58, as traders wait to see what the latest tariff announcements mean. US President Donald Trump and UK Prime Minister Keir Starmer just struck a “breakthrough” trade deal, cutting UK tariffs on US imports to 1.8% from 5.1%. But a 10% US tariff on British goods remains, so upside is capped.

Meanwhile, the market is shifting its focus to the upcoming US-China trade talks where Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will meet China’s top economic official in Switzerland this weekend. If these talks lead to a broader tariff rollback, it could boost risk and cap silver’s safe-haven appeal.

Technical Levels to Watch

Silver is in a wedge, so a breakout is imminent:

Silver Price Chart - Source: Tradingview
Silver Price Chart – Source: Tradingview
  • Immediate Resistance: $32.58 (50 EMA) – critical short-term level

  • Next Resistance: $32.94 – descending trendline from recent highs

  • Major Hurdle: $33.24 – key level for bullish momentum

On the downside, the trendline near $32.23 is a key support zone, aligns with the bigger uptrend from late April.

Silver Trade Setup

For those looking to get in on the next move, the wedge is a clear risk-reward setup:

  • Buy Setup: Long if silver breaks above $32.58, confirming the reversal. Initial targets are $32.94, then $33.24.

  • Risk Management: Stop just below the trendline at $32.23 to limit downside.

  • Momentum Confirmation: Watch for a bullish MACD crossover for additional confirmation.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
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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