Silver Price Holds Above $34.00 as XAG/USD Pulls Back on Stronger USD

Silver Price Holds Above $34.00 as XAG/USD Pulls Back on Stronger USD

June 3, 2025 – Commodity Market Analysis

The Silver price (XAG/USD) is trading lower on Tuesday following a minor rebound in the US Dollar (USD) during the early European session. Despite the pullback, bullish momentum remains intact, with strong support holding near the $34.00 level.

Stronger USD Pressures Silver Prices

Silver's decline follows Monday’s surge to six-month highs, fueled by:

• Weak US economic data
• Concerns over new tariffs dampening US manufacturing
• A steep drop in the USD, driven by falling PMI numbers

However, with risk appetite recovering slightly, the USD has gained ground, triggering a modest correction in Silver. The retreat appears technical rather than fundamental, as broader drivers remain supportive.

See also: How US Dollar Movements Influence Precious Metals

XAG/USD: Technical Overview

• Support: $34.00 – holding firm amid selling pressure
• Resistance: $35.00 – key level to break for renewed bullish momentum
• Trend Bias: Bullish, with short-term corrective pullback

Traders may view current levels as a buy-the-dip opportunity, with confirmation needed from further USD weakness or renewed geopolitical/economic concerns.

What’s Next for Silver Traders?

• Watch for developments in US trade policy and tariff announcements
• Monitor upcoming US labor data and Fed commentary
• Keep an eye on real yields and risk sentiment, both of which strongly influence silver demand

Related on Tredu.com:

• Silver vs. Gold: Which Precious Metal Has More Upside?
• How Tariffs and Trade Wars Shape Commodity Prices
• XAG/USD Technical Forecast: Price Levels to Watch