Silver price consolidates near $32.75 after Trump trade remarks on China
Silver faces fundamental pressures as risk-on sentiment gains traction
Silver prices maintained an uptrend this week, reaching a high of $33.2 yesterday, close to last week's peak of $33.4. However, the rally paused, with the metal finding support at $32.75 aligning with a bullish trendline from last week. As technical indicators reinforce the price floor, broader market developments introduce potential headwinds for further gains.
The $32.75 level, currently holding as support, coincides with the 100 EMA and the Fibonacci golden ratio on the hourly chart, adding technical weight to its significance. During the European session, silver saw modest buying interest, rising to $32.9. If this momentum continues, the metal could push above the previous day’s high and retest last week's peak at $33.4.
Silver price dynamics (February 2025). Source: TradingView.
Silver price outlook: Risk-on sentiment and Fed policy speculation in focus
Despite the technical strength, silver faces fundamental pressures as risk-on sentiment gains traction. U.S. President Donald Trump’s remarks about potential progress in trade negotiations with China eased market concerns over tariffs, reducing safe-haven demand for metals. Trump also suggested that Chinese President Xi Jinping might visit, further bolstering risk appetite.
However, Trump’s comments labeling Ukrainian President Volodymyr Zelenskiy a dictator during ongoing peace talks with Russia introduced new geopolitical concerns. While uncertainty surrounding global conflicts can sometimes lift silver prices, the broader market reaction suggested a shift toward risk assets.
Silver’s ability to hold the $32.75 support level is critical for maintaining the bullish trend. The RSI readings on the daily and four-hour charts is in bullish territory, supporting further upside. A break above $33.2 could open the door for a retest of $33.4, while failure to sustain current levels may lead to deeper consolidation. The market’s response to this evolving risk sentiment and Fed policy expectations will be key factors influencing silver’s next move.
Fresh threats from U.S. President to impose tariffs on imported goods is benefiting silver. Silver has gained additional support from a weaker Greenback, making it more attractive to global buyers.
