- Silver price soars to near $33.30 despite multiple headwinds.
- US Trump didn’t reveal a detailed reciprocal tariff plan on Thursday.
- The Fed is expected to hold interest rates steady in the next three policy meetings.
Silver price (XAG/USD) surges over 2.5% to near $33.30 in Friday’s North American session, the highest level seen in more than three months. The white metal soars even though risks of a global trade war have paused temporarily and the Federal Reserve (Fed) is expected to maintain a restrictive monetary policy stance for longer.
US President Donald Trump seems short of imposing reciprocal tariffs than what market participants had anticipated. Investors had expected that Trump could unveil a detailed plan of reciprocal tariffs on Thursday. The assumption was based on his tweet at his Truth Social account that “Three great weeks, perhaps the best ever, but today is the big one: reciprocal tariffs!!! Make America great again!!!”, which came in early North American trading hours on Thursday.
However, Trump only passed an order to the Commerce and Treasury departments to prepare a plan on reciprocity, which confirmed that tariffs are not happening, at least for now.
This scenario diminished fears of global uncertainty, which is technically not favorable for the Silver price.
The impact of a delay in Trump’s reciprocal tariffs is visible on the US Dollar (USD), with the US Dollar Index (DXY) revisiting the four-week low around 106.80.
According to the CME FedWatch tool, the Fed is expected to keep interest rates steady in the next three policy meetings.
Silver technical analysis
Silver price breaks strongly above the key resistance of $32.50, which is plotted from the December 9 high. The outlook of the white metal was already bullish as the 20-day Exponential Moving Average (EMA) has been sloping higher, which trades around $31.60.
The 14-day Relative Strength Index (RSI) oscillates in the 60.00-80.00 range, suggesting that the momentum is strongly bullish.
Looking down, the December 9 high of $32.50 will be the key support for the Silver price. While, the October 31 high of $33.90 will be the key barrier.
Silver daily chart
