Silver’s price rose close to 1% on Monday, amidst pressure on the US Dollar and an increased demand for safe-haven assets like precious metals. Currently, XAG/USD stands at $32.30, recovering from daily lows of $31.98, and fluctuates within the $31.67–$32.61 range.

The price increase follows US President Donald Trump’s tariff announcements, which weakened the Dollar and boosted Silver’s appeal. Should XAG/USD rise above $33.50, it could target $34.00, whereas slipping below $31.67 may push it towards the 200-day SMA at $31.11.

Silver hit a peak on March 28 at $34.58, then plunged to $28.33, a six-month low. Although it recovered, it remained below $34.00, stabilising in its current range in recent trading days, with momentum indicators favouring sellers since May 1.

If XAG/USD breaches $33.00, Silver might test support at the 100-day SMA of $31.67 or the 200-day SMA of $31.11. Silver, less popular than Gold, is traded for value diversification and inflation hedges, with availability in physical and financial market forms. Its price fluctuates with interest rates, geopolitical factors, Dollar strength, mining supply, and demand in major sectors like electronics and solar energy.

Silver prices often move in tandem with Gold, sharing similar safe-haven status, and are influenced by the Gold/Silver ratio. This ratio can indicate potential relative value between the two metals.

What we’re seeing here is an uptick in silver prices, largely driven by external pressure on the US Dollar and a shift in sentiment toward perceived stability—precious metals being among the go-to options. Silver moved up by nearly 1% on Monday, now hovering around $32.30. That’s a recovery from an earlier dip but hasn’t yet broken to the upside. That range between $31.67 and $32.61 has kept it boxed in, for now.

This latest move came after President Trump’s announcement on tariffs, which had a weakening effect on the Dollar. When the Dollar retreats, anything priced in it—Silver included—can become more attractive. This makes the metal more affordable to foreign buyers, and suddenly, demand builds. Those looking at the $33.50 level will want to keep a close eye. A break above that number could shift focus towards $34.00. But if it falls below $31.67, the next active level sits around the 200-day simple moving average at $31.11. That matters, not because of short-term charts, but because it’s generally watched by a wide audience and could spark either support or momentum-based selling.

From a broader view, prices peaked back in late March, above $34.50, only to fall to a six-month trough near $28.30. Since then, recovery has been hesitant. Not weak, just cautious. Sellers, from what we’ve tracked since early May, have been slowly gaining traction, and momentum tools continue to lean in their favour. That doesn’t imply a collapse is ahead, just that upward advances are meeting regular resistance.

If we get a push past $33.00, markets could look to that 100-day SMA now resting just under the $31.70 mark as a point of renewed scrutiny. That same moving average level aligns well with the bottom end of the current range, giving it more meaning than just a number on a chart. Below that, the 200-day at $31.11 could come into play—it’s both a technical threshold and a confidence zone for fund-driven trading desks.

More broadly, Silver functions as a diversification tool when traders want to balance out exposure away from risk-sensitive instruments, especially in times when inflation, interest rates or broader currency shifts are expected to move. Unlike Gold, it’s less in the spotlight, but that also allows more room for quiet momentum to build or unwind without major headlines. With sectors like electronics and solar technology slowly increasing their role in consumption, any supply squeeze or production lag has downstream implications.

Movements in Gold also help shape price action. The ratio between Gold and Silver is one we monitor regularly; when it stretches too far, corrections tend to follow—sometimes sharply. A widening gap often signals that Silver is undervalued relative to Gold and can attract longer-term positioning seeking reversion.

Heading into the next few trading sessions, attention will likely stay on the Dollar’s trajectory, residual trade noise from Washington, and whether precious metals can retain their current safe-haven appeal. Any sudden jump in implied volatility or continued Dollar weakness could see renewed buying interest. On the flip side, should yields start rising again or geopolitical risks abate, some traders will rotate out—particularly those operating with shorter timeframes.

Every level now carries context. Each threshold tells us something about positioning, expectations, and how tightly wound sentiment is. Keep responses nimble. Let data—not bias—guide the next trade.