XAG/USD price holding at $30.37 amid easing Middle East tensions
Silver rebounds to $30.37, supported by 50 EMA, resistance from 2024 trendline persists
Silver, a traditional safe-haven asset, is displaying mixed performance as easing Middle East tensions and anticipation of President-elect Donald Trump’s policies weigh on market sentiment.
After dipping to $30.10 last Friday, forming a bearish engulfing pattern, silver recovered slightly on January 20, rising to $30.37 during the European session. This rebound was supported by the 50-period exponential moving average (EMA) on the 4-hour chart, though broader resistance from the trendline established in late 2024 continues to challenge silver’s upside potential.
Over the weekend, the first day of a ceasefire between Hamas and Israel brought an exchange of hostages and prisoners after 15 months of conflict. This reduction in Middle East tensions may have diminished silver’s role as a safe-haven asset. The easing of geopolitical risk suggests less immediate demand for silver as an inflation hedge tied to global uncertainty.
Silver price dynamics (October 2024-January 2025). Source: TradingView
Silver price outlook: market awaits Trump's inflationary policies
On the domestic front, markets are taking a cautious approach ahead of President-elect Donald Trump’s inauguration. Trump’s proposed policies, such as trade tariffs, tax cuts, and immigration reforms, are expected to drive inflation. This creates a scenario where silver could still gain appeal as a hedge against rising prices, should inflationary pressures materialize.
From a technical perspective, silver has near-term support at $29.80. Holding above this level could stabilize the price, while bullish signals from the Relative Strength Index (RSI) on both daily and 4-hour charts suggest potential for upward momentum. Breaking the key trendline resistance would be necessary for silver to sustain a recovery.
In summary, while easing geopolitical risks weigh on silver’s safe-haven appeal, inflation concerns tied to U.S. economic policies provide an ongoing reason to consider silver as a hedge. However, silver’s ability to hold above $29.80 will be key to determining whether a recovery is sustainable.
Silver's price held steady near $30.55 per troy ounce, following three consecutive days of gains. Silver’s price was driven by China’s industrial production growth of 6.2% year-over-year.
