Silver Price Steadies Near $38: Can Bulls Push Toward $39.50 Resistance?
Silver was hovering around $38.10 an ounce on Monday after a wild ride, following gold’s bounce as US Treasury yields fell...
Quick overview
- Silver prices are currently around $38.10 an ounce, influenced by falling US Treasury yields and geopolitical negotiations.
- US President Trump is advocating for peace talks between Ukraine and Russia, which has created a cautious market sentiment.
- Expectations of a September rate cut by the Fed are making non-yielding assets like silver more attractive to investors.
- Technical indicators suggest silver is consolidating in a tight range, potentially setting up for a significant price movement.
Silver was hovering around $38.10 an ounce on Monday after a wild ride, following gold’s bounce as US Treasury yields fell. Now investors are focused on two big drivers: the geopolitical negotiations in Washington and the Fed’s Jackson Hole symposium.
US President Donald Trump is meeting with Ukrainian President Volodymyr Zelenskiy and European leaders to push for peace talks with Russia. Reports suggest Moscow might give up some territory in exchange for concessions from Kyiv. While the outcome is unknown, the possibility of progress has added a cautious tone to the market. For silver, which is both a safe-haven and an industrial metal, geopolitical events drive short-term flows.
At the same time, Fed expectations are keeping traders on edge. Economists are expecting a September rate cut – the first of the year – with another possible in December. Lower rates weaken the dollar and Treasury yields, which supports non-yielding assets like silver.
Fed Expectations Support Safe-Haven Appeal
Silver’s dual role puts it in a unique position in portfolios. It tracks gold during times of political or financial stress. It’s also an industrial metal tied to sectors like solar and electronics, which gives it an economic sensitivity that gold doesn’t have.
With the Fed about to signal a more dovish stance, non-yielding metals look more attractive to investors seeking diversification. Benchmark 10-year Treasury yields have rolled over from recent highs, which is boosting demand for silver as a hedge.
KCM Trade’s chief market analyst Tim Waterer said: “Gold reversed at $3,330, and silver’s dip-buyers are doing the same at $37.50. The market’s telling us there’s demand for value.”
Gold Technicals Point to Breakout
On the technicals, silver is consolidating in a tight range, setting up for a big move. The 2-hour chart shows a rising trendline supporting higher lows, which intersects with key support at $37.50.
- The 50-period SMA at $38.11 is the pivot.
- RSI at 52 is neutral, so there’s room for momentum to build.
- MACD lines are flattening near zero, which is a sign of an upcoming crossover.
If silver goes above $38.71, it’s looking at $39.15 and then $39.52. If it can’t hold $37.50 it’s $37.02 and $36.48.
For newbies, it’s like a coiled spring. Each bounce off the trendline is tightening the market, storing up energy for a big move once it breaks or breaks down.
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