Silver is currently trading at around $36.40. This marks its third straight day of decline, impacted by a stronger US Dollar and rising US Treasury yields. The metal remains in a narrow consolidation range, close to its recent 13-year highs.
Recent US tariff threats have kept demand for safe-haven assets like silver steady. However, these tensions have not driven a clear breakout in prices. President Donald Trump announced new tariffs, including a 50% tariff on copper imports and a potential 200% tariff on pharmaceutical imports. Additionally, a 10% tariff is planned on all BRICS nations, perceived as aligned against US interests.
Despite global uncertainties supporting safe-haven assets, silver has struggled to gain ground. Last week’s strong US labour data makes an immediate Federal Reserve interest rate cut less likely, supporting the US Dollar and limiting demand for non-yielding assets. Silver trades between $35.50 and $37.30, within an ascending channel since April. It drifts near the lower boundary, above the 21-day EMA at $36.19, which has provided support.
Technical indicators show muted momentum, with the RSI near 56 and ADX at 12.50, indicating a weak trend. A breakout above $37.30 could lead to higher gains, but for now, silver remains range-bound, with geopolitical factors being the focus.
With silver now hovering near $36.40, we find ourselves observing a frustrating third consecutive daily decline. This downtrend coincides with a firming US Dollar and climbing yields in the US Treasury market—both of which tend to dent the appeal of precious metals. Silver maintains proximity to a 13-year high, yet it’s showing hesitation, consolidating in a tight corridor rather than extending its gains.
The White House’s latest tariff intentions—particularly the eye-catching 200% levy on pharmaceutical imports and the sweeping 10% blanket on BRICS countries—have underpinned some demand for hard assets. Historically, heightened trade friction and geopolitical shocks have translated into stronger moves in metals. This time, however, prices have lacked urgency, slipping sideways rather than breaking upwards.
Labour market strength in the United States has played a role as well. The better-than-expected figures last week likely postponed expectations for any imminent softening in monetary policy. That, in effect, bolsters the US Dollar and pins yields higher—conditions not typically favourable for silver, which carries no yield of its own. Traders, therefore, are balancing safe-haven interest driven by political risk with downside pull from monetary tightness.
Chart-wise, we’re sitting within a rising structure that dates back to April, bounded for now between $35.50 at the base and $37.30 at the top. The 21-day exponential moving average, currently perched near $36.19, has acted as a soft floor. So long as silver remains above it, support appears persuasive enough to discourage abrupt selling. Still, bulls will need more than stability—they need initiative.
Technical cues remain subdued. Relative Strength Index at 56 leans neither deeply overbought nor oversold, hovering near neutral territory. ADX at 12.50 echoes the same lack of energy. In our reading, no firm trend has taken hold. For this reason, it makes little sense to position aggressively unless price pushes above that $37.30 mark with conviction and volume behind it. Until then, a break lower would test existing support zones and should be monitored.
Directional setups should incorporate both macro triggers and technical inflection points. With the Dollar showing resilience and monetary easing off the table for now, priorities should shift towards short-term volatility rather than sustained trends. Temporary correlation breaks may arise, especially if geopolitical developments intensify or risk sentiment sours unexpectedly.
Careful attention is also warranted around yield movements in the bond market. Should Treasury yields peak or retrace, safe-haven flows could return to metals. On the other hand, further solid US economic prints would maintain upward pressure on yields and keep real rates attractive, potentially extending the rangebound action—or worse, inviting a bearish correction.
We should treat the current price activity as one of watching and waiting rather than initiating bold directional trades. Patience and preparedness on either side of the channel remain the more defensive approach. Entry points must be calculated with stop placement reflecting uncertain but contained movement—anchored either by moving average support or the channel edge, depending on the setup in play.
