Silver prices have risen to nearly $34.00 amid cautious trading ahead of President Trump’s tariff announcement. Trump plans to impose around 20% tariffs on most imports to the US, which could negatively affect the global economy.
While typically, the US Dollar would gain appeal in uncertain conditions, it faces pressure due to anticipated inflationary effects from these tariffs. The Federal Reserve may maintain interest rates between 4.25% and 4.50% as a result.
Technical Signals Support Bullish Momentum
On March 6, private employers are expected to report an addition of 105,000 jobs, compared to 77,000 in February. Silver continues to approach the upper border of an Ascending Triangle formation, while the 20-day Exponential Moving Average offers support near $33.44.
The 14-day Relative Strength Index is attempting to break above 60, suggesting potential bullish momentum. Key levels include $32.77 as support and $34.87 as a major resistance.
Silver remains a sought-after asset for diversification and as a potential hedge against inflation. Although less favoured than gold, it retains intrinsic value and can be traded in various forms.
Industrial demand plays a significant role in silver pricing, particularly in electronics and solar energy. Global economic conditions influence these prices alongside investment demand and mining supply dynamics.
Silver typically tracks movements in gold prices, as both are regarded as safe-haven assets. The Gold/Silver ratio serves as a means to evaluate the relative value between the two metals.
Market Behavior Reflects Broader Macroeconomic Concerns
What we’ve seen this week is a pronounced uptick in silver prices, driven largely by tensions around upcoming US import tariffs. With the White House leaning toward broad 20% tariffs, markets are bracing for repercussions in global manufacturing and trade. That ripple effect is already being priced in across metals markets, especially among those metals with broader industrial applications like silver.
While under normal conditions the US Dollar might firm up in the shadow of economic anxiety, this scenario is somewhat different. Any tariff-induced price increases would likely feed into higher domestic inflation, which tends to weigh on the dollar’s relative appeal. Traders expecting traditional safe-haven flows into the currency may find themselves caught offside if inflation expectations rise too steeply. It would explain why the Fed is looking more content to hold rates where they are for now.
The approaching labour market update this week, specifically from private employers, could add fuel. With 105,000 jobs anticipated, up from last month’s 77,000, any beat might undercut the defensive stance, pushing yields higher and weighing on non-interest-bearing assets like precious metals. On the other hand, a miss could trigger renewed interest in metals as policy may continue to hold.
In technical terms, the price action in silver has been telling its own story. The Ascending Triangle — a classic continuation formation — remains intact, with buying interest repeatedly stepping in above the 20-day EMA near $33.44. That level is proving reliable as short-term support. In the RSI, a push past the 60 mark could attract more positional long interest, especially from trend-following strategies. The next area to watch is $34.87 — a level that has capped rallies in recent months.
From a broader view, silver remains a compelling option for risk spreaders. Though historically overshadowed by gold, it carries a real mix of investment and industrial utility. That dual nature makes it highly responsive to changes in both the economic cycle and market sentiment. Electronics and solar continue to pull consistent demand, and tight mining supply in several regions won’t go unnoticed either.
Looking at relative value tools, the Gold/Silver ratio continues to offer insight into where either metal may be over or undervalued. If the ratio starts to compress notably, it suggests silver is gaining faster — which, in combination with rising industrial demand, could suggest more upside near term. Those with positions in either metal will want to track that spread across daily closes.
We’re also watching positioning across futures markets. Open interest and options delta shifts could hint at dealer hedging or speculative buying building up behind the scenes. However, if price momentum stalls into resistance again or fails to hold the triangle, a swing lower toward $32.77 would represent the first line of defence technically. It’s a zone to manage exposure rather than panic, but it matters.
When volatility is expected to rise, hedging assumptions need adjusting. Weekly and monthly implied vols are already reacting to macro risk, and this needs factoring into any convexity-based strategy. Scaling into or out of positions should consider these variables, particularly where duration plays a role.
Act accordingly and monitor not only headline risks, but also positioning flows and correlation shifts — particularly between equities, rates, and commodities — as these are likely to matter more over the next fortnight.
