Silver Price May Continue to Rise Amid Uncertainty – What’s Next?

Fed Chairman: No Rush to Adjust Interest Rates

Amid the ongoing uncertainty sparked by President Trump’s shifting tariff policies—imposing tariffs, suspending them, and then threatening to reimpose additional ones—markets, especially in the United States, have been thrown into turmoil over the past two weeks. Investors are searching for clarity, though monetary policymakers have offered little cause for optimism.

Despite market hopes for optimism, Powell remarked that the scale of the tariffs imposed was larger than anticipated and could place additional strain on the labour market while pushing inflation higher. He affirmed that the Federal Reserve would take steps to contain inflation but stressed that the key issue is whether the inflation surge proves to be sustained. In line with this view, he expressed agreement with other Fed officials who see no need to rush into interest rate cuts.

Mounting Pressure on China

The ongoing tariff exchange between the United States and China has escalated into a clear trade war. In its efforts to contain China’s growing influence, the U.S. has been pressuring countries currently engaged in trade negotiations to scale back their economic ties with China—hinting at this a prerequisite for reaching trade deals with Washington. Additionally, the U.S. aims to diminish China’s manufacturing strength by urging these countries to impose secondary tariffs on Chinese goods and to halt the import of surplus Chinese products.

Progress appears to have been made with nations such as Japan and the United Kingdom, where trade agreements are making swift steps towards completion. However, there has been little indication of meaningful advancement in talks with the European Union, particularly considering recent criticism from the U.S. Treasury Secretary to the Spanish Economy Minister’s visit to China.

Significantly, this abrupt shift in U.S. trade policy has rippled through financial markets, affecting a broad range of assets—including stocks, bonds, and currency values. The U.S. dollar weakened, as investors Favoured the Japanese yen and Swiss franc as safer alternatives. One of the most notable outcomes of the dollar’s decline has been the surge in prices of precious metals, such as silver.

Silver Prices Recover Most of Their Losses

On April 7, silver prices dropped to their lowest levels in several months, hitting $28.31 per ounce. However, they quickly rebounded as some bears exited the market, encouraging bulls to step in. This momentum pushed prices to close above the 50-day moving average yesterday.

Right now, silver may be poised to test the high end of the current trading range between 31.54 and 34.40. A daily close above the high end of this zone could signal a continuation of the uptrend toward 35.40. In this scenario, the resistance level of 34.85 should be considered.

Technical Levels to Consider in the Opposite Scenario

Conversely, a daily close below the low end of the trading zone at 31.54 may suggest a weakening of upward momentum and a possible decline toward 28.74. In this case, the support level of 30.68 should be kept in focus.

Silver price – Daily Chart

Chart Source: ADSS Platform