Silver price climbs 1.5% as Trump urges global rate cuts at Davos
The metal has shown signs of renewed bullishness
Silver is at a critical juncture in January 2025, with its uptrend facing a period of consolidation. Despite reaching a high of $30.97 last week, silver has struggled to break this ceiling even with early gains this week.
However, the metal has shown signs of renewed bullishness, climbing by 1.5% in the Asian session on Friday, January 24, after finding support at the 100-day Exponential Moving Average (EMA).
This bullish price action in silver can be attributed to recent comments from US President Donald Trump. In a statement from the World Economic Forum in Davos, Trump urged the Federal Reserve for an immediate cut in interest rates, citing falling oil prices. His call for global rate reductions could boost demand for non-interest-bearing assets like silver.
Additionally, Trump's optimism about avoiding tariffs on China, following a conversation with President Xi Jinping, hints at a potential de-escalation in US-China trade tensions, which traditionally supports metal prices due to China's role as the world's largest consumer of metals and a significant manufacturing hub.
Silver price dynamics (November 2024-January 2025). Source: TradingView.
Silver price holds $30.8 poised for six-week high breakoutIn today’s European session, the price of silver has softened slightly to around $30.8, but the potential for a breakout remains strong. A move above the $30.97 level could propel silver to its highest in six weeks, potentially testing the psychological $31 mark. Technical indicators like the Relative Strength Index (RSI) on both the 4-hour and daily charts are in bullish territory, which also suggests further upward momentum.
These policy statements and the prospect of increased industrial demand for silver could further drive its price. Silver's recent performance, coupled with these external influences, paints a promising picture for its price outlook in the near term.
Silver's failure to break the $30.96 resistance led to a 1% decline during the Asian session.Support from the 100-day EMA limited further price drops, stabilizing silver near $30.53.
