Silver Trades Near $38 Awaiting U.S.-EU Trade Signals
Silver (XAG/USD) hovers near the $38 mark as markets await clearer signals from ongoing US-EU trade negotiations
FUNDAMENTAL OVERVIEW:
Silver (XAG/USD) is trading in a narrow range near the $38 level, as traders await further developments in U.S.-EU trade negotiations.
Market focus sharpened after U.S. President Donald Trump suggested that a deal with the EU was possible and expressed optimism about an upcoming trade agreement with India. His remarks coincided with EU trade chief Maros Sefcovic’s visit to Washington for the next round of trade discussions.
Given the EU’s role as a major U.S. trading partner, any escalation or breakthrough in talks could significantly impact global trade dynamics. In times of heightened geopolitical and economic uncertainty, silver often attracts safe-haven demand.
Additionally, expectations of rising U.S. inflation, especially with new tariffs set to take effect on August 1, are likely to lend further support to silver prices. The metal historically performs well during inflationary periods.
XAG/USD TECHNICAL ANALYSIS CHART:
Technical Overview:
XAG/USD is trading within an up channel.
XAG/USD is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 38.35
Immediate support level: 37.45
HOW TO TRADE XAG/USD
On the higher time frame, XAG/USD had been steadily climbing before entering a consolidation phase. Recently, it broke out to the upside with a sharp rally, marking a new record high. Currently, the pair is facing resistance and pulling back toward a key support level. If this support holds, XAG/USD may resume its upward trajectory.