Silver price edges higher as traders weigh easing tariffs amid U.S. CPI data release
Silver rebounds to $38.30 as tariff rally fades and traders eye CPI
Silver kicked off the new week by extending last week’s upward momentum, supported by a surge in volume and geopolitical tensions.
The initial rally climbed on the back of fresh tariffs imposed by U.S. President Donald Trump. The 30% tariff on imports from the European Union and Mexico, announced over the weekend, sparked fresh demand for safe-haven assets, giving Silver an initial push toward a new 14-year high of $39.10.
Highlights
-Silver hit $39.10 on tariff news before reversing on Trump’s trade talk comments
-Silver rebounds 0.66% to $38.30 today as dollar strength fades before U.S. CPI
-RSI stays neutral, and 50 EMA holds as key support ahead of inflation data
However, that rally was short-lived as the market reacted to Trump’s softening stance. He expressed openness to renewed trade talks. These remarks weighed on Silver sentiment, reversing the earlier gains. Price fell back and closed Monday’s trading at $38.10, ending the day down by 0.66%. Notably, this pullback occurred on decreasing volume, hinting at reduced conviction behind the sell-off.
Silver price dynamic (May - July 2025). Source: Tradingview
The decline in Silver was also in sync with the strength in the U.S. dollar, as the DXY index pushed higher on Monday. However, by Tuesday’s European session, dollar strength had eased. As a result, Silver rebounded slightly, posting a 0.66% uptick to trade near $38.30. This move helped recover a portion of the previous day’s losses and kept hopes alive for a shift back into weekly gains.
Silver RSI remains flat, showing lack of conviction ahead of inflation data
From a technical standpoint, the 1-hour chart RSI is in neutral territory, suggesting a phase of indecision among market participants. Silver price is still hovering near the 50 EMA, a level that is acting as a pivot in the short term. A clean break below this moving average could open the path for a deeper retracement in the coming days.
The key macro driver on the horizon is the upcoming U.S. inflation data. The market is waiting on the latest CPI figures, particularly the core CPI reading, which excludes volatile food and energy prices. A higher-than-expected print could revive dollar strength and potentially pressure Silver lower. Conversely, a weaker inflation number would support Silver, as it may increase the likelihood of future interest rate cuts from the Federal Reserve.
Until then, Silver’s price trajectory is likely to be shaped by fluctuations in the dollar and traders’ positioning around the CPI event. For now, the market is holding its breath near key support levels, awaiting the next trigger.
Silver holds near $39.1 after hitting a 14-year high on Friday in a 4% surge. Tariff fears and safe haven demand push silver up 8.35% month-to-date despite dollar strength.
