News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
Silver Breaks Below Key Support as Oversold Rally Stalls
Commodity
Summary:
Silver's rally loses steam as the US and China ease tariffs, undermining safe-haven appeal. Diminished Fed rate cut expectations and a shift in geopolitical risk sentiment weigh on XAG/USD, which hovers around $32.
Sell
CLOSEDXAGUSD
End Time
32.000
Entry Price
30.500
TP
33.000
SL
32.967 -0.331 -0.99%
1000
Points
Loss
30.500
TP
33.003
CLOSING
32.000
Entry Price
33.000
SL
Silver (XAG/USD) came under renewed pressure in early Asian trading on Thursday, shedding its recent bullish momentum and trading near the $32.00 per troy ounce mark. The pullback comes as appetite for defensive assets fades amid a notable easing in global trade tensions and a recalibration of monetary policy expectations from the Federal Reserve.
In a move that has reverberated across global markets, both Washington and Beijing have taken concrete steps toward de-escalating long-standing tariff hostilities. According to diplomatic and trade officials familiar with the matter, the United States has agreed to cut tariffs on a range of Chinese goods—from a punitive 145% down to 30%. In a reciprocal gesture, China will slash tariffs on U.S. imports from 125% to just 10%.
The dramatic reduction in cross-border trade barriers is viewed as a material shift in bilateral relations and signals renewed diplomatic engagement between the world's two largest economies. President Donald Trump, speaking in a televised Fox News interview, hailed the progress as "remarkable" and suggested that the White House is actively exploring a potential direct summit with Chinese President Xi Jinping to finalize a broader trade accord.
Michael Hart, President of the American Chamber of Commerce in China, echoed this optimism, stating that "a rollback in tariffs could reinvigorate supply chains, reduce input costs, and encourage foreign investment on both sides." Risk-sensitive markets responded in kind, with equity futures climbing and Treasury yields nudging higher, further undercutting demand for non-yielding assets like silver.
Compounding the downward pressure on silver is a discernible shift in expectations for U.S. monetary policy. Investors had previously priced in multiple interest rate cuts in 2025, anticipating a more accommodative Fed amid tepid inflation data. However, the improving global risk backdrop has prompted markets to walk back some of these dovish bets.
Still, softer-than-expected consumer inflation data for April injected a dose of ambiguity into the policy outlook. The U.S. Bureau of Labor Statistics reported a year-over-year increase in the Consumer Price Index (CPI) of 2.3%—below March’s 2.4% and slightly softer than economists’ consensus. Core CPI, which strips out volatile food and energy prices, rose 2.8%, matching expectations. On a monthly basis, both measures posted a 0.2% uptick.
While the inflation data briefly softened the U.S. Dollar and lent marginal support to precious metals, the underlying narrative remains one of waning inflation pressures in the short term—especially before the new round of tariffs takes effect in May.
Looking ahead, investor focus is shifting to Friday’s release of the U.S. Producer Price Index (PPI) and the University of Michigan’s Consumer Sentiment Survey—two high-frequency indicators that could shape market expectations around the Fed’s June meeting.
Technical Analysis
From a technical standpoint, silver has broken below a critical intraday support level near $31.90, halting its recent rally. This move triggered a corrective bounce as the metal sought to unload its oversold conditions on the Relative Strength Index (RSI), which had slipped into extreme territory.
Despite some early signs of a rebound, the broader technical setup remains fragile. XAG/USD continues to trade beneath the 50-period Exponential Moving Average (EMA50), suggesting persistent bearish pressure on the short-term charts. Moreover, chart analysts are closely monitoring the development of a descending triangle pattern—a formation typically associated with downside breakouts. A decisive break below $31.90 would confirm the bearish continuation and potentially expose silver to further declines toward the $30.50 region.
However, should silver manage to stabilize above the current support zone and reclaim EMA50 territory, it could challenge immediate resistance near $32.60, followed by the psychological $33.00 threshold.
TRADE RECOMMENDATION
SELL SILVER
ENTRY PRICE: 32.00
STOP LOSS: 33.00
TAKE PROFIT: 30.50
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2025 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.