- Silver price trades with caution near $30.00 as the US Dollar surges amid a jittery market mood.
- A sell-off in technology stocks across the globe has improved the US Dollar’s appeal.
- US bond yields gain as investors expect the Fed to keep interest rates steady.
Silver price (XAG/USD) recovers some of its intraday losses and strives to hold the key level of $30.00 in Tuesday’s European session. The white metal trades with caution amid a dismal market sentiment. The marker sentiment is deeply risk-averse as global technology, power, and data center stocks have faced an intense sell-off as market experts believe that Chinese Deepseek’s low-cost Artificial Intelligence (AI) model could challenge the dominance of top chatbots like OpenAI and Meta.
Technically, the appeal of precious metals increases in a highly risky market environment. However, a significant surge in the US Dollar (USD) and bond yields has restrictive the upside in the Silver price. The safe-haven demand for the US Dollar has increased significantly amid a sharp sell-off in technology stocks. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, jumps to near 108.00.
Meanwhile, 10-year US Treasury yields jump to near 4.56% ahead of the Federal Reserve’s (Fed) monetary policy announcement on Wednesday. The Fed is certain to announce a temporary pause in the policy-easing cycle and leave interest rates unchanged in the range of 4.25%-4.50%, according to the CME FedWatch tool.
Investors will pay close attention to Fed Chair Jerome Powell’s press conference to know for how long the Fed will keep borrowing rates steady. Market participants would be keen to know the impact of potential tariffs by President Donald Trump on the monetary policy stance and the economy.
Silver technical analysis
Silver price struggles near the 50-day Exponential Moving Average (EMA) around $30.40. The white metal continues to face pressure near the upward-sloping trendline around $30.90, which is plotted from the 29 February 2024 low of $22.30 on a daily timeframe.
The broader outlook of the Silver price remains firm above the 200-day Exponential Moving Average (EMA), which trades around $29.50.
The 14-day Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, suggesting a sideways trend.
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.
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.
Recommended content
Editors’ Picks

EUR/USD retreats to 1.0950 area as safe-haven flows dominate markets
EUR/USD loses its traction and declines to the 1.0950 area following a recovery attempt earlier in the day. The risk-averse market atmosphere makes it difficult for the pair to hold its ground as investors grow increasingly concerned over a deepening trade war weighing on global economic activity.

GBP/USD drops to fresh monthly low, tests 1.2800
GBP/USD stays under persistent bearish pressure in the European session on Monday and trades at its lowest level in a month near 1.2800. The intense flight-to-safety remains the main market theme after US President Donald Trump's tariffs triggered a global trade war last week.

Gold price holds above $3,000 amid a global meltdown; bulls seem non-committed
Gold price attracts some sellers near the $3,055 support-turned-resistance and stalls its intraday recovery from the $2,972-2,971 area, or a nearly four-week low touched earlier this Monday. Investors continue to unwind their bullish positions to cover losses from a broader meltdown across the global financial markets

Solana Price Forecast: Bears gain momentum as SOL falls below $100
Solana (SOL) extends its loss by over 7% and falls below the $100 mark at the time of writing on Monday after crashing 15.15% last week. Coinglass data shows that SOL’s leveraged traders wiped out nearly $70 million in liquidations in the last 24 hours.

Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.

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.