Spot Silver fell on Tuesday after a weekend tariff-driven surge lifted prices by 6%. After rising over 6% on Monday, XAG\/USD pulled back to about $87.87 as profit-taking increased.<\/p>\n
President Trump announced a 15% global tariff, which supported demand for safe-haven assets. The move followed a US Supreme Court decision that struck down broader emergency tariffs.<\/p>\n
The Silver Institute expects a sixth straight year of supply deficits in 2026. Forecast deficits are 67 to 120 million ounces, with demand from AI data centres, electric vehicles, and semiconductors offsetting lower solar panel use.<\/p>\n
Markets expect the Federal Reserve to hold rates in March, with about 60 basis points of cuts priced for the rest of the year. Delayed US jobs and CPI releases, plus several Fed speakers, are set to guide near-term pricing.<\/p>\n
On the daily chart, silver dropped about 1% on Tuesday and tested $85.00. It remains above the 50-day EMA near $80.20 and the 200-day EMA near $57.85, with the uptrend in place since the $60.80 low.<\/p>\n
Since early February, price has ranged from about $75 to $90 after a fall from $121.66. Resistance is near $90 and $92\u2013$93, while support is at $85, then $80, with $75 below.<\/p>\n
Given today’s pullback to the $87 level, we see an opportunity after the tariff-fueled rally. The profit-taking appears to be a healthy consolidation, but the underlying safe-haven demand from geopolitical tensions remains a powerful factor. We believe this dip is a potential entry point for bullish positions rather than a major reversal of the trend.<\/p>\n
We are considering buying call options with strike prices above the immediate $90 resistance, such as the $95 or $100 strikes, for expirations in the second quarter. Implied volatility has jumped following Monday’s surge, making options more expensive, but it also signals the market’s expectation of continued large price swings. This strategy allows for significant upside exposure while clearly defining our maximum risk.<\/p>\n
To manage risk, we are watching the $85 support level closely as a key trigger for protective measures. A decisive break below this area could prompt us to buy put options or establish short futures positions to hedge our existing long exposure. The 50-day moving average near $80 is the critical line that must hold to maintain the current bullish market structure.<\/p>\n
The forecast for a sixth consecutive supply deficit provides a strong fundamental floor for the price. Looking back, we saw a record physical deficit of over 230 million ounces in 2024, which helped drive the sustained rally through most of 2025. This ongoing structural imbalance suggests strong industrial demand will likely absorb any dips caused by short-term speculative selling.<\/p>\n
The Federal Reserve’s stable stance also provides a supportive backdrop, with the CME FedWatch tool showing over a 90% probability of rates remaining unchanged in March. This reduces near-term policy uncertainty and places more importance on this week’s delayed jobs and inflation data. A weaker-than-expected jobs report could easily accelerate rate cut expectations for later this year and provide another tailwind for precious metals.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Silver retreats to $87.87 after tariff-driven surge; profit-taking rises as markets await Fed cues, data.<\/p>\n","protected":false},"author":62,"featured_media":16978,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-42715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/42715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=42715"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/42715\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16978"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=42715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=42715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=42715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}