- Silver rallies as US PPI tops forecasts, signaling renewed inflation pressures.
- Tariff-driven price gains in services amplify concerns of cost pass-through to consumers.
- Trade uncertainty and stalled US-Iran talks underpin safe-haven demand despite firm Dollar.
Silver price (XAG/USD) extends its gains for the third consecutive day after the latest inflation report in the United States prompted investors to seek the safety of the white metal, while the Greenback remained firm. At the time of writing, XAG/USD trades near $91.39 up close to 3%.
XAG/USD jumps as elevated US producer prices, trade tensions revive haven demand
Market mood turned negative as the US Producer Price Index (PPI) in January exceeded estimates sponsored by import tariffs, signaling that inflation could reaccelerate in the upcoming months.
Headline PPI dipped from 3% to 2.9% YoY but exceeded forecasts of 2.6%. Core PPI, which excludes volatile items and reflects a clear picture of prices, increased by 3.6% YoY, missing estimates and the last month reading of 3% and 3.3%, respectively.
Tariffs are the main reason for the jump in prices. Services accounted for a 0.8% increase in PPI, led by trade services up 2.5%. Margins for professional and commercial equipment rose 14.4%, a signal that businesses were passing on tariffs.
Aside from this, uncertainty about tariffs and the lack of progress of nuclear talks between the US and Iran, are a tailwind for Silver prices, which are set to finish the month with gains of over nearly 10%.
US Trade Representative Jamieson Greer said that the country has begun collecting 10% tariffs since Tuesday, under section 122. He added that for some countries, duties will rise to15%.
XAG/USD Price Forecast: Technical outlook
In the daily chart, XAG/USD trades at $91.69. The near-term bias is cautiously bullish as price holds well above the rising 50–200-day simple moving average cluster around $84–85, keeping the broader uptrend intact despite recent volatility. Daily RSI around 57 stays above its midline and edges higher, signaling recovering upside momentum after the mid-range consolidation. Multiple upward-sloping support trend lines from the $20s through the $60s reinforce the long-term ascending structure, indicating that pullbacks remain corrective within a dominant bullish phase.
Initial support emerges near the dynamic zone of the longer moving averages around $84–85, with a deeper cushion aligning with prior swing congestion in the low-$80s if sellers extend a correction. A sustained break below this band would expose the next downside area toward the high-$70s, where the broader trend structure would come under pressure. On the topside, immediate resistance is defined by the recent highs just above $96, and a daily close above that barrier would reopen the path toward the psychological $100 handle. A clean break over $100 would confirm trend continuation, leaving scope for a retest and potential extension of the rally within the prevailing bullish channel.
