Silver price holds around 14-year high on tariff-driven safe haven demand
Silver rallies 8.35% in July despite strong U.S. dollar
Silver has entered the new trading week on strong footing, building on last Friday’s sharp surge that pushed the price up by 4% to $38.5.
This level had not been seen in over 14 years, marking a significant technical and psychological breakthrough.
Highlights
-Silver holds near $39.1 today after hitting a 14-year high on Friday in a 4% surge
-Today’s price consolidates after Asian gains as RSI signals overbought conditions
-Tariff fears and safe haven demand push silver up 8.35% month-to-date despite dollar strength
The rally on Friday was not only the largest one-day gain in over a month, but it was also accompanied by the highest daily trading volume during the same period. What made the move more notable was that it occurred despite the relative strength of the U.S. dollar, a rare divergence in the traditional inverse correlation between silver and the greenback.
Silver price dynamic (May - July 2025). Source: Tradingview
Today, Monday, July 14, the bullish momentum carried over into the Asian session, where silver gained nearly 2%, pushing prices toward $39.12. However, during the European session, price movement turned more subdued, consolidating near that level without much additional upside. Silver has now registered three consecutive days of gains and currently sits on a month-to-date increase of 8.35%.
Silver traders to monitor U.S. CPI and tariff rhetoric as buying interest sustains
The primary fundamental driver behind silver’s recent strength is the announcement from U.S. President Donald Trump of new 30% tariffs on imports from the European Union and Mexico, set to take effect August 1. The move rattled global markets and revived safe-haven demand for precious metals. While expectations for Federal Reserve rate cuts have softened, lending some support to the dollar, these gains in the dollar have not translated into pressure on silver. Instead, geopolitical and trade-related uncertainties are providing more dominant support to the metal.
There are no key U.S. economic data releases today to sway market sentiment, which means that the tariff development remains the main factor in focus. As long as tariff risks and related rhetoric persist, silver could continue advancing, possibly retesting the $40.0 psychological level later this week. This upside potential may also be influenced by anticipation around the upcoming U.S. CPI data, a key event that could affect rate expectations.
From a technical perspective, the RSI is now in overbought territory across multiple timeframes, suggesting silver may be ripe for a temporary pullback if sentiment shifts or if the dollar strengthens. Immediate support is layered at the 20 EMA above $38.5 — the previous week’s high, and then the 50 EMA at $38.0. These levels could act as key buffers in the event of a retracement before any further advance.
Trump’s tariff threats boosted safe-haven demand and pushed silver higher. Silver broke out of a multi-week consolidation and reached $37.56.
