Silver prices reached an all-time high of over 53 USD/ounce, driven by a significant short squeeze in London. This rally was further fueled by safe-haven demand following the resumption of US-China trade tensions.
US President Trump expressed openness to negotiations after announcing an additional 100% tariff on Chinese goods, but China has not responded. Meanwhile, China's Sep exports surprisingly increased by 8.3% YoY, the fastest pace in six months, driven by demand from countries other than the US. Exports to the US fell 27% YoY due to tariff pressures. This indicates that the additional threat from Trump may not significantly impact China, especially given its crucial role in the AI value chain and its dominance in rare earth production. These elevated tensions could continue to drive markets toward safe-haven assets amid global instability.
On the supply side, the London Bullion Market Association, as reported by Bloomberg, confirmed that it is “aware of tightness in the silver market and is actively monitoring the situation.” Mine production has remained below demand since 2021, primarily due to electrical and electricity demand, especially from photovoltaics, where China is a dominant force. The ongoing supply shortage could continue to support silver prices.
Technically, XAGUSD is showing strong bullish momentum after breaking its previous record high, with both EMAs diverging and extending.
XAGUSD could continue to rise and test the 227.2% Fibonacci extension at 60.
Conversely, price could face take profit pressure after a long rally with the RSI indicates the overbought level (over 88). If the bullish momentum weakens, XAGUSD could test the resistance level at 47.88.
By Van Ha Trinh - Financial Market Strategist at Exness
US President Trump expressed openness to negotiations after announcing an additional 100% tariff on Chinese goods, but China has not responded. Meanwhile, China's Sep exports surprisingly increased by 8.3% YoY, the fastest pace in six months, driven by demand from countries other than the US. Exports to the US fell 27% YoY due to tariff pressures. This indicates that the additional threat from Trump may not significantly impact China, especially given its crucial role in the AI value chain and its dominance in rare earth production. These elevated tensions could continue to drive markets toward safe-haven assets amid global instability.
On the supply side, the London Bullion Market Association, as reported by Bloomberg, confirmed that it is “aware of tightness in the silver market and is actively monitoring the situation.” Mine production has remained below demand since 2021, primarily due to electrical and electricity demand, especially from photovoltaics, where China is a dominant force. The ongoing supply shortage could continue to support silver prices.
Technically, XAGUSD is showing strong bullish momentum after breaking its previous record high, with both EMAs diverging and extending.
XAGUSD could continue to rise and test the 227.2% Fibonacci extension at 60.
Conversely, price could face take profit pressure after a long rally with the RSI indicates the overbought level (over 88). If the bullish momentum weakens, XAGUSD could test the resistance level at 47.88.
By Van Ha Trinh - Financial Market Strategist at Exness
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Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.