Silver Prices Hit $34.78, Eye $35+ as Trade Tensions Loom Large

Silver (XAG/USD) is holding steady around $34.24 after a big rally tested resistance at $34.78—right at the 0% Fib. Bulls pushed prices higher but momentum has cooled and silver is pulling back to test $34.36, the 23.6% Fib. This zone is key for short term traders to gauge breakout.

A rising trendline is providing support and the 50 period EMA at $33.58 is cushioning price dips. But the MACD is flashing warning signs: a bearish crossover is forming and momentum is fading. We might see sideways action or a minor pullback in the near term.

Key levels to watch:

• Resistance: $34.36, $34.78, $35.03

• Support: $34.09, $33.88, $33.67, $33.36

Macro Factors: Trade Tensions Fuel Safe-Haven Demand

The macro backdrop is adding fuel to the fire. US-China trade tensions are unresolved and President Trump is threatening to hike tariffs (from 25% to 50% on steel and aluminum). The European Commission is hinting at countermeasures and the White House confirmed a call between Trump and Xi Jinping this week.

This uncertainty is boosting demand for safe-haven assets like silver and gold as equity and currency markets prepare for turbulence. Traders are watching the JOLTS Job Openings report, Factory Orders data and speeches from FOMC members Goolsbee, Cook and Logan for direction.

Silver Trade Setups: Breakout or Consolidation?

Silver is tightening in a rising channel so a breakout is imminent. A close above $34.36 could push prices to retest $34.78 with a possible extension to $35.03. Failure to hold support at $34.09 or $33.88 could open up a dip to $33.67 or $33.36.

Watch for:

• Bullish signals: Engulfing candles, MACD crossover, strong volume above $34.36

• Bearish signals: Shooting stars, three black crows, MACD crossovers below signal line