Silver Price Forecast: XAG/USD Breaks Above $37.30 as Risk Aversion Lifts Safe-Haven Demand

Silver Price Forecast: XAG/USD Breaks Above $37.30 as Risk Aversion Lifts Safe-Haven Demand

Published: July 11, 2025
Category: Commodities | Precious Metals | XAG/USD

Silver Extends Rally Amid Mounting Trade Uncertainty

Silver (XAG/USD) continues its bullish run for the second consecutive day on Friday, decisively breaching the key resistance level at $37.30, a long-standing high last seen in 2012. The move comes as global markets shift to risk aversion, driven by President Trump’s aggressive tariff measures.

Trump Tariffs Stoke Market Jitters, Fuel Safe-Haven Buying

US President Donald Trump imposed 35% tariffs on Canadian imports and signaled an increase in blanket tariffs for other nations from 10% to 15%-20%. He also hinted at sending a formal letter to the European Union, raising fresh concerns over the global trade landscape and pushing traders into safe-haven assets like Silver and Gold.

This escalation in trade tensions has triggered selloffs in equities and spurred safe-haven flows into precious metals, reinforcing bullish momentum in the XAG/USD pair.

Technical Outlook: Bulls Target $37.65 and Beyond

With the $37.30 resistance level now cleared, XAG/USD opens the door for an advance toward the next key resistance at $37.65, followed by the psychological $38.00 mark. The Relative Strength Index (RSI) remains in bullish territory, and unless momentum wanes or a reversal is triggered, the bias remains upward.

“The breakout above the February 2012 high has energized bulls,” noted a Tredu metals analyst. “With inflation and trade fears resurging, Silver could revisit $38.00 or even higher if momentum sustains.”

Key Factors Driving XAG/USD:

• Risk aversion fuels safe-haven demand
• Trump’s new 35% tariff on Canada sparks global concern
• Silver breaks out of multi-year high resistance
• Technical outlook favors continued bullish momentum

Related Tredu Articles:

• Gold Price Forecast: XAU/USD Gains as Tariff Fears Escalate
• US Dollar Index Hits 98.00: What It Means for Commodities
• Trump’s Trade Policy: Full Timeline and Market Impact