Silver Price Forecast: XAG/USD Surges on Weak USD and Trade War Fears

Silver Breaks Higher as Safe-Haven Demand Spikes

Silver (XAG/USD) extended its rally on Monday, gaining over 3% intraday as geopolitical and trade concerns reignite safe-haven flows. The white metal broke decisively above its 10-day Simple Moving Average (SMA), currently offering support near $33.28, suggesting bullish momentum is building.

US Dollar Sell-Off Adds to Silver’s Momentum

The US Dollar weakened sharply after US President Donald Trump accused China of violating the May 12 Geneva trade agreement. This added to existing market pressure caused by increased tariffs on steel and aluminum imports. The drop in USD made silver relatively cheaper for foreign investors, enhancing its appeal.

Trump Renews Trade Tensions with China

In a post on Truth Social, Trump stated:

“China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!”

This statement caused a spike in risk aversion, lifting both gold and silver prices, as markets once again price in the potential for a drawn-out trade conflict between the world’s two largest economies.

Internal Linking Suggestions for Tredu.com:

• Live XAG/USD Chart and Technical Indicators
• Precious Metals Market Overview
• How Trade Wars Affect Commodity Prices
• US Dollar Index and Its Impact on Silver