Silver price may surge to a multi-month high

Federal Reserve Meeting Minutes awaited

Investors will follow the FOMC meeting minutes tonight at 11:00 PM UAE time, which will provide insights into the discussions of the Fed’s committee members with the rationale behind the decision to keep interest rates unchanged. Notably, the Fed cut interest rates by 100 basis points last year, contributing to the recent uptick in US inflation. The US Consumer Price Index (CPI) rose to 3% in January, the highest level since mid-last year, driven by previous rate cuts and rising energy prices.

Inflation concerns loom amid new tariffs

Markets anticipate further increases in US inflation due to President Trump’s tax policies and newly imposed tariffs:

• 25% on imports from Canada and Mexico (suspended for 30 days for ongoing negotiations).
• 10% on Chinese imports, effective immediately.
• Tariff hikes on aluminum and steel from 10% to 25%.
• Potential 25% tariffs on imports of cars, electronic chips, and pharmaceuticals.

These policies have heightened uncertainty around US trade relations, prompting investors to seek safe-haven assets. As a result, gold and silver prices have surged by about 5% since February and 11% year-to-date.

Silver prices outlook – potential for further gains

At the end of January, silver prices broke above the 31.00 resistance level and started an upward trend, creating higher highs and higher lows. Currently, prices seem to be heading towards the high end of the current trading zone located between 31.54 with 34.40. A daily close above 34.40 signals a stronger bullish momentum, potentially pushing prices toward 35.40. In this scenario, the resistance area between 34.55 and 34.87 should be considered.

Key levels to watch in a bearish scenario

A daily close below 31.54 would indicate weakening bullish momentum and may lead to a correction toward 29.45. However, the support level at 30.67 should be monitored.

Sliver price – Daily Chart

Chart Source: ADSS Platform