Silver Rises Toward $38.60 on Safe-Haven Demand
XAG/USD climbs toward $38.60 on stronger safe-haven demand
FUNDAMENTAL OVERVIEW:
Silver (XAG/USD) rebounds from recent losses, trading near $38.50 per ounce during Tuesday’s Asian session. The metal gains support from safe-haven demand amid heightened concerns over Federal Reserve independence after President Trump announced the removal of Fed Governor Lisa Cook on allegations of mortgage fraud.
Trump shared a letter on social media confirming Cook’s dismissal, which could raise expectations of earlier rate cuts, given his persistent pressure on the Fed to lower borrowing costs. However, Cook rejected the move, stating there was no valid cause for termination and vowed to continue her duties.
Adding to market uncertainty, Trump threatened a 200% tariff on Chinese goods if Beijing fails to supply magnets to the U.S., Reuters reported. Bloomberg also noted his warning of further tariffs and export restrictions on advanced technology in retaliation for digital services taxes targeting American firms.
Meanwhile, Fed Chair Jerome Powell, speaking at Jackson Hole, highlighted growing risks to the labor market while maintaining that inflation remains a concern, stressing that policy decisions are not yet finalized. Investors now turn their focus to upcoming U.S. Q2 GDP and July PCE inflation data, the Fed’s preferred gauge, for further policy cues.
SILVER TECHNICAL ANALYSIS CHART:
Technical Overview:
Silver is trading within an up channel.
Silver is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Neutral trend.
Immediate Resistance level: 39.06
Immediate support level: 38.13
HOW TO TRADE SILVER
After a strong rally, Silver faced rejection and turned lower before finding support from renewed buying interest. This strength propelled prices sharply higher, breaking through a key resistance zone. Currently, Silver is pulling back to retest this support area. If the zone holds and buyers defend the level, the metal could resume its upward momentum.