Silver prices fell nearly 2% to approximately $32.80 during North American trading hours. This drop occurred as the US and EU moved closer to a trade agreement, causing a decrease in demand for safe-haven assets like Silver.

The US Dollar strengthened due to efforts between Washington and Brussels towards a bilateral trade deal. This strengthening of the Dollar makes Silver more costly when priced in US currency.

The US Dollar Index rose to nearly 99.35, showing a rebound from a monthly low of 98.70. This increase followed Trump’s decision to delay tariffs, though limited trading on Memorial Day initially influenced the Dollar’s performance.

For the past month, Silver prices have fluctuated between $31.65 and $33.70, showing an uncertain trend. The market’s technical indicators, such as the 20-period Exponential Moving Average and the Relative Strength Index, suggest a sideways trend.

Silver serves as both a valuable store and a medium of exchange, influencing its investment appeal. It is affected by geopolitical tensions, interest rates, and the US Dollar’s movements, alongside investment demand and mining supply.

Silver also has industrial demand, especially in electronics and solar energy sectors. Demand shifts in the US, China, and India can cause price changes. Silver prices often move in tandem with Gold, and the Gold/Silver ratio helps assess their relative values.

Silver’s near-2% fall to just under $32.80 during recent North American sessions reflects repositioning in response to macroeconomic shifts, particularly around progress in foreign trade agreements. With indications that talks between Washington and Brussels are gaining traction, investors showed less interest in traditional safe-haven assets. Silver tends to gain when uncertainty dominates. A softening of geopolitical concerns or reduced expectations of trade disruption tends to push it lower, as we have just seen.

While the recent sell-off may seem like a sharp correction, the strength of the US Dollar appears to be the immediate driver. A firmer currency, especially when gauged against the Dollar Index now trading near 99.35, makes dollar-priced metals more expensive in other currencies. That tends to suppress demand internationally. This shift follows a temporary rise in risk appetite after tariff delays were announced by the White House, providing more breathing room for importers and exporters alike. Holiday-thinned trading volumes may have initially skewed Dollar movements, but recent price actions suggest the market is now stabilising around this new narrative.

From a technical outlook, Silver prices have mostly oscillated in a narrow band between $31.65 and $33.70 over the last month. This rangebound behaviour, when paired with a largely flat 20-period Exponential Moving Average and a middling RSI, points to indecision rather than a clear trend. We’ve not seen momentum build in either direction, which implies that traders are hesitant until more data comes in or volatility kicks up.

Any trader following technical setups exclusively would have seen that sideways patterns like these favour a mean-reverting strategy. In other words, prices tend to bounce between resistance and support rather than break out. That creates potential for short-term positions if timed accurately around these levels, though conviction in either bullish or bearish direction is weak at this stage.

Looking beyond the charts, Silver’s dual role as both an investment asset and an industrial input makes it more complex than simply chasing momentum. The metal has steady demand from electronics manufacturers and solar panel producers, where it’s valued for its conductivity and reflectivity. When there’s a rise in output expectations in countries like China or India, Silver use could jump. But anything hinting at factory slowdowns or reduced solar installations carries the opposite implication.

We also keep a close eye on buying patterns in exchange-traded funds and futures markets. Quiet inflows suggest investors are waiting for a stronger directional cue. Silver generally tracks Gold when broad sentiment shifts, but any divergence there can signal an imbalance worth exploiting. The Gold/Silver ratio is one tool to help detect such discrepancies. A widening ratio may suggest Silver is undervalued relative to Gold, though timing entries is key.

The current macro and technical setup suggests that positions should be short-dated and adaptable. With no meaningful breakout yet, it would be premature to commit to longer contracts. We are treating pullbacks near support levels as temporary until macro conditions provide confirmation of trend reversal or new range establishment.

Short-term volatility events, including PMI data from Asia and any updates to interest rate guidance by the Federal Reserve, could break the current stasis. Until then, watching how prices react at the edges of their current range—both technically and sentimentally—remains the approach.