Forecast – XAG/USD holds early gains driven by US trade policy uncertainty
- Silver price surges over 2% to near $86.50 amid uncertainty over the US trade policy’s outlook.
- The US Supreme Court struck down President Donald Trump’s tariff policy.
- US-Iran tensions continue to provide support to the Silver price.
Silver price (XAG/USD) trades 2.13% higher to near $86.50 during the European trading session on Monday. The white metal strengthens as the United States (US) Supreme Court ruling against President Donald Trump’s tariff policy has revived trade uncertainty.
Theoretically, the safe-haven appeal of the Silver price increases in highly uncertain market conditions.
On Friday, the US SC accused President Trump of overstepping his authority by using the International Emergency Economic Powers Act (IEEPA) to back his tariff agenda and blocked so-called reciprocal tariffs, calling them “illegal”.
The US SC’s verdict against Trump’s tariffs has resulted in a sharp decline in the US Dollar (USD). As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.35% lower to near 97.45.
Technically, a lower US Dollar makes the Silver price an attractive bet for investors.
Apart from the US trade policy uncertainty, tensions between the US and Iran over the nuclear programme in Tehran are also supporting the Silver price. Last week, a report from the Wall Street Journal (WSJ) showed that President Donald Trump is weighing a limited military strike on Iran to pressure Tehran to agree to a nuclear deal.
Silver technical analysis
-1771832367207-1771832367208.png&w=1536&q=95)
XAG/USD surges to near at $86.50 during the press time. Price holds above the 20-day EMA at $82.78, which has stabilized and begun to turn higher. This configuration supports a recovery bias towards the February 4 high of $92.21.
Looking down, the psychological level of $70.00 will remain a key support area for Silver price bulls.
The 14-day Relative Strength Index (RSI) continues to wobble inside the 40.00-60.00 range, demonstrating that the broader trend is still sideways.
