XAG/USD Faces Downward Pressure Below $31.00
XAG/USD Faces Downward Pressure Below $31.00
Silver prices (XAG/USD) have recently come under significant pressure, trading below the $31.00 mark.
This decline is primarily attributed to the introduction of new trade tariffs by the U.S. administration, which have raised concerns about global economic growth and industrial demand for silver.
President Donald Trump's announcement of comprehensive tariffs, including a baseline 10% duty on nearly all imports, has led to fears of a global trade war.
These tariffs particularly affect the semiconductor industry, a major consumer of silver, thereby weakening the industrial demand outlook.
Silver prices have fallen below critical support levels, including the 50-day moving average and the 61.8% Fibonacci retracement level.
The confluence of these technical indicators around $32.53 is being closely monitored.
A decisive break below this level could expose further downside toward $31.81 and potentially the 200-day moving average near $30.89.
The semiconductor sector, heavily reliant on silver, is facing reduced demand due to the newly imposed tariffs.
This development contributes to the bearish sentiment surrounding silver, as industrial demand constitutes a significant portion of its consumption.
