Silver (XAG/USD) holds steady near $34.00 – Market Update

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Silver (XAG/USD) holds steady near $34.00, hovering around a five-month high





FUNDAMENTAL OVERVIEW:

  • Silver price remains near its five-month high of $34.08, driven by strong safe-haven demand.
  • The Houthis have claimed responsibility for an attack on the USS Harry S. Truman aircraft carrier.
  • Meanwhile, risk sentiment may improve as Trump and Putin prepare for potential ceasefire discussions in Ukraine.

Silver price (XAG/USD) extends its decline for a second consecutive day, trading near $33.60 per troy ounce during European hours on Monday. Despite the pullback, it remains close to the five-month high of $34.08, recorded on March 14.

Silver remains supported by safe-haven demand as geopolitical tensions in the Middle East escalate. On Sunday, the Houthis claimed responsibility for an attack involving 18 ballistic and cruise missiles, along with drones, targeting the USS Harry S. Truman aircraft carrier and its escorting warships in the northern Red Sea.

Meanwhile, U.S. Defense Secretary Lloyd Austin reaffirmed Washington’s commitment to countering Yemen’s Houthis until they halt their attacks on shipping. In response, the Iran-backed group has pledged to intensify its retaliatory actions following recent U.S. strikes.

However, silver’s upside could face limitations amid potential ceasefire discussions in Ukraine, as U.S. President Donald Trump and Russian President Vladimir Putin are expected to engage in talks this week.

Additionally, escalating trade tensions—driven by tariff exchanges between the U.S. and key trading partners—continue to bolster silver’s appeal as a safe-haven asset. Investors now turn their attention to upcoming central bank policy meetings, including the U.S. Federal Reserve’s decision, where interest rates are widely expected to remain unchanged amid uncertainty over Trump’s economic policies.

SILVER TECHNICAL ANALYSIS DAILY CHART:

Technical Overview:

Silver is trading within an up channel.

Silver is moving above all the Moving Averages (SMA).

The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Neutral trend.

Immediate Resistance level: 34.08

Immediate support level: 33.24

HOW TO TRADE SILVER

Following an initial upward surge, Silver encountered resistance, prompting a downward retracement until it reached a strong support zone, which fuelled a bullish reversal. Currently, Silver has surpassed a key resistance level and is undergoing a pullback. The metal is now nearing its major support; a successful retest of this level could set the stage for renewed upward momentum.

TRADE SUGGESTION- LIMIT BUY– 33.28, TAKE PROFIT AT- 34.28, SL AT- 32.77.



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