Silver price broke a three-session losing streak on Wednesday, going up by 0.2% to trade at $33.77 at the time of writing. The greyish metal mirrored the performance of its rich cousin, gold, which hovered near its all-time-high price set earlier in the week. The momentum is driven by risk aversion in financial markets as traders wait with bated breath for the onset of US reciprocal tariffs.
US President Donald Trump is set to announce cross-cutting trade tariffs on goods starting April 2, setting the stage for increased inclination towards safe haven assets like silver and gold. US trading partners have expressed intention to institute retaliatory tariffs, which could mothball into a broader global economic crisis. Dubbed “Liberation Day”, the tariff plan has not left out America’s closest allies.
However, silver price upside will likely be limited by gold’s propulsion from the ADP Non Farm Employment Numbers. The reading came out at 155k, beating the forecast figure of 118k. The metric is seen as a good predictor of the more weighty Non Farm Payrolls (NFP) figures set for release on Friday.
In addition, China’s Manufacturing PMI rose to 50.5 in March from February’s 50.2, hitting the highest level in the last 12 marks. That augurs well for silver price upside, as the metal is used used in multiple industrial processes.
Silver Price Prediction
The momentum on silver price favours the buyers to stay in control above $33.66. The first barrier will likely be at $33.98. However, a stronger momentum will break above that level and potentially test the second resistance at $33.20.
On the other hand, the momentum could shift to the downside if the price breaks below $33.66. That will likely see the XAGUSD go lower to find the first support at $33.43. The upside narrative will be invalid if the price breaks below that level. Furthermore, an extended control by the sellers could see the the price go lower to test $33.24.
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