Silver prices are holding steady near $33.80 amid concerns regarding the US economic outlook. Consumer confidence has dropped to 92.9 from 100.1 in February, potentially driving demand for safe-haven assets like Silver.
The US Dollar Index trades around a three-week high of 104.50 as market participants await crucial inflation data on Friday, which may impact monetary policy expectations. The Silver price is testing the October 22 high of $34.87 from an upward-sloping Ascending Triangle pattern.
Key Support And Resistance Levels
Support exists near the 20-day Exponential Moving Average of $33.10, while the March 6 high of $32.77 serves as a key support level. Silver’s prices are influenced by various factors, including industrial demand and its perceived value in relation to Gold.
Silver has been holding steady near $33.80, reflecting a market that is carefully weighing economic uncertainties. Consumer confidence in the United States has dipped to 92.9, a noticeable decline from February’s 100.1 reading. That sort of shift often raises questions about economic resilience, and when consumers pull back, traders tend to shift focus toward safe-haven assets.
Meanwhile, the US Dollar Index remains strong, hovering around 104.50, reinforcing the idea that traders are bracing for Friday’s inflation data. If those numbers indicate inflation is proving sticky, the market may need to reassess expectations around monetary policy. A stronger dollar, as we have seen, typically places pressure on metals, but Silver’s pricing remains resilient, suggesting traders are still finding value in its defensive appeal.
From a technical perspective, the price level that traders should be closely watching is the October 22 high at $34.87, which the current upward trajectory appears to be targeting. The market has formed an Ascending Triangle pattern, a structure that traders often look for as a precursor to a potential breakout. But if Silver pulls back, immediate support is found at the 20-day Exponential Moving Average at $33.10, with further support near the March 6 high of $32.77.
Broader Market Considerations
There’s also a broader picture to consider beyond immediate technical levels. Silver is not just a safe-haven asset; its industrial applications keep demand steady, particularly in sectors like electronics and renewable energy. Its performance often moves in relation to Gold, but with its own distinct drivers at play.
Traders will need to remain attentive not just to US economic data, but to how market sentiment shifts around inflation and Federal Reserve policy expectations. If sentiment skews in favour of tighter monetary conditions, Silver may struggle to gain momentum. However, any indication that policymakers might lean toward a more accommodative approach could provide support. For now, the metal’s resilience suggests a market that is waiting for more clarity before making its next decisive move.
