Silver price consolidates as traders weigh tariff boost against strong U.S. jobs data
Silver drops below bullish channel as strong U.S. jobs data lifts dollar
Silver took on a sharp downturn at the beginning of the week on July 7, breaking below the support trendline of the bullish channel that had maintained its upward trajectory since last week.
Silver price dropped to a three-day low at $36.15, where the decline found temporary relief at the 20-day EMA. The initial breakdown was triggered by stronger U.S. employment data, which reduced expectations for an imminent rate cut. This shift in policy outlook strengthened the U.S. dollar and weakened non-yielding assets like Silver.
Highlights
-Silver fell sharply and broke its bullish channel support due to strong US jobs data
-Silver recovered 1.7% on U.S. tariff shock but lacked volume conviction
-Silver is consolidating near $36.76 as traders await fresh drivers and volume signals
However, Silver reversed its losses later in the North American session on Monday after President Trump announced sweeping new tariffs on seven countries, including major U.S. trading partners like Japan and South Korea. This unexpected escalation in trade tensions pressured the U.S. dollar and sparked a strong recovery in precious metals. Silver regained more than 1.7% of its earlier loss on Monday, climbing back into the bullish channel that had characterised last week’s upward trend. Despite this rebound, the recovery occurred on declining volume, hinting at cautious participation from buyers.
Silver price dynamics (June - July 2025). Source: TradingView
Today, July 8, Silver has been consolidating around the previous day's closing price of $36.76. The lack of follow-through momentum is tied to the weak volume observed during Monday’s rebound. Even into the current North American session, Silver has not made any significant move above or below this level, suggesting traders are awaiting fresh catalysts.
Silver price ranges today and risks reversal if EMA and channel support break
Technically, the 20 EMA on the four-hour chart has been acting as support at $36.67, preventing deeper intraday losses. The RSI on the hourly chart is neutral at 50, while broader timeframes continue to show bullish momentum, indicating that underlying strength may support a potential upside move.
A breakout above today’s consolidation could push Silver to retake the $37 psychological level and open the door for a test of the previous monthly high at $37.31. If Silver manages to reclaim these levels, it would reinforce the idea of an ongoing bullish trend and possibly set the stage for a new multi-year high in the near term.
On the other hand, a move below the 20 EMA support and a fresh break under the channel trendline could shift focus toward a short-term bearish outlook. Such a move would signal that sellers have regained control, potentially dragging Silver into a new correction phase. Hence, market participants will closely monitor global trade news, volume dynamics and key support levels to determine if Silver can build on recent gains or face renewed downward pressure.
Silver dropped sharply to $36.36 after breaking last week’s high and facing strong rejection. Strong U.S. jobs data pushed the dollar higher and triggered heavy silver selling.
