Silver Price Forecast: XAG/USD oscillates above $30.00 with Trump’s inauguration on the horizon


  • Silver price trades sideways above $30.00, with investors focusing on Trump’s inauguration ceremony.
  • US Trump’s policies are expected to be pro-growth and inflationary for the economy.
  • Easing geopolitical tensions in the Middle East region trim safe-haven demand.

Silver price (XAG/USD) trades in a tight range near $30.30 in Monday’s European session. The white metal consolidates as investors shift focus to United States (US) President-elect Donald Trump’s swearing ceremony.

Ahead of Trump’s inauguration, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, declines to near 109.00. 10-year US Treasury yields rise to near 4.64%. Higher yields on interest-bearing assets increase the opportunity cost of holding an investment in non-yielding assets, such as Silver. Generally, higher yields limit the upside in the Silver price.

Investors expect Donald Trump to tighten immigration policies, lower taxes, and raise import tariffs under his administration, which would boost growth and inflationary pressures in the United States (US) economy. This would force the Federal Reserve (Fed) to keep interest rates elevated for longer. Historically, the appeal of the Silver improves in a highly inflated environment. However, higher for longer interest rates bode poorly for Silver.

On the geopolitical front, easing tensions between Israel and Hamas in the Middle East has diminished safe-haven demand. Both nations released some hostages on Sunday, which appears to be a meaningful move to an end to the 15-month-old war in Gaza.

Silver technical analysis

Silver price struggles near the upward-sloping trendline around $30.85, which is plotted from the 29 February 2024 low of $22.30 on a daily timeframe.

The white metal discovered strong buying interest near the 200-day Exponential Moving Average (EMA) around $29.45 but struggles to sustain above the 50-day EMA, which is around $30.30.

The 14-day Relative Strength Index (RSI) faces pressure near 60.00. A fresh bullish momentum would trigger if it manages to break above 60.00.

Silver daily chart

Silver FAQs

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review

Recommended content


Recommended content

Editors’ Picks

EUR/USD trims gains toward 1.1000 as focus shifts to Fed Minutes

EUR/USD trims gains toward 1.1000 as focus shifts to Fed Minutes

EUR/USD heads toward 1.1000 in the European session on Wednesday, reversing the uptick to near 1.1100 , The US Dollar recover as traders resort to repositioning ahead of the Fed Minutes release. However, USD buyers stay cautious as the trade war escalation aggravates US economic concerns. 

EUR/USD News
GBP/USD revisits 1.2800 as US Dollar finds footing

GBP/USD revisits 1.2800 as US Dollar finds footing

GBP/USD is trimming gains to retest 1.2800 in European trading on Wednesday. The pair faces headwinds as the US Dollar stages a modest comeback even as investors remain wary over the impact of the escalating global trade war on the US economic prospects. Tariff updates and Fed Minutes awaited. 

GBP/USD News
Gold price builds on strong intraday gains; bulls retain control near $3,050 area amid risk-off mood

Gold price builds on strong intraday gains; bulls retain control near $3,050 area amid risk-off mood

Gold price climbs back closer to the $3,050 area during the early European session on Thursday as worries that an all-out global trade war would push the world economy into recession continue to boost safe-haven demand.

Gold News
XRP Price Forecast: XXRP ETF and Trump tariffs shaping XRP fundamental outlook

XRP Price Forecast: XXRP ETF and Trump tariffs shaping XRP fundamental outlook

XRP struggles to stay afloat, with key support levels crumbling due to volatility from macroeconomic factors, including United States President Donald Trump's reciprocal tariffs kicking in on Wednesday.

Read more
The Fed is looking at a hefty price level

The Fed is looking at a hefty price level

We are still in thrall to tariffs, the faux-macro “data” driving markets. The WSJ editorial board advised other countries to take their tariffs to zero so that Trump’s “reciprocal” tariffs will have to be zero, too. Cute, but no cigar.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025