Silver prices dropped nearly 2% to about $32.80 during North American trading hours. This decline happened as the US and EU made progress toward a trade agreement, which lowered demand for safe-haven assets like silver. The US Dollar gained strength because of efforts between Washington and Brussels to create a bilateral trade deal. A stronger dollar makes silver more expensive when priced in US currency. The US Dollar Index rose to nearly 99.35, recovering from a monthly low of 98.70. This increase came after Trump’s decision to postpone tariffs, though limited trading on Memorial Day initially affected the dollar’s performance. Over the past month, silver prices have moved between $31.65 and $33.70, indicating an uncertain trend. Market indicators, like the 20-period Exponential Moving Average and the Relative Strength Index, suggest a sideways market. Silver is a valuable asset for investment and a medium of exchange. Its value is influenced by geopolitical tensions, interest rates, and movements in the US Dollar, as well as investment demand and mining supply. Additionally, silver has industrial uses, especially in electronics and solar energy. Changes in demand from the US, China, and India can lead to price fluctuations. Silver prices usually move in tandem with gold, and the Gold/Silver ratio helps assess their relative values. Silver’s nearly 2% drop to just under $32.80 during recent North American sessions highlights market adjustments due to macroeconomic changes, especially regarding trade agreements. Progress in talks between Washington and Brussels led investors to seek less traditional safe-haven assets. Typically, silver performs better when uncertainty is high; a decrease in geopolitical worries or trade disruption expectations usually pushes its price down, as we have just seen. While the recent sell-off might seem like a sharp correction, the stronger US Dollar appears to be the main factor. A firmer dollar, particularly with the Dollar Index now near 99.35, makes dollar-priced metals more costly in other currencies, which lowers international demand. This change follows a brief rise in risk appetite after tariff delays were announced by the White House, giving importers and exporters more leeway. Holiday-limited trading volume may have initially skewed dollar movements, but recent price actions suggest the market is now stabilizing under this new narrative. From a technical perspective, silver prices mostly moved within a narrow range of $31.65 to $33.70 over the last month. This behavior, combined with a flat 20-period Exponential Moving Average and a neutral Relative Strength Index (RSI), indicates uncertainty rather than a clear trend. The lack of momentum in either direction shows that traders are cautious until more information becomes available or volatility increases. Traders focusing solely on technical setups would notice that sideways patterns like these favor a mean-reverting strategy. In other words, prices tend to bounce between resistance and support rather than break out. This creates an opportunity for short-term trades if timed well, although there is little confidence in either a bullish or bearish direction right now. Looking beyond charts, silver’s dual role as an investment and an industrial commodity adds complexity. The metal is consistently in demand from electronics manufacturers and solar panel producers due to its conductivity and reflectivity. Increases in production expectations in countries like China or India could boost silver usage, while signs of factory slowdowns or fewer solar installations would have the opposite effect. Monitoring buying patterns in exchange-traded funds and futures markets is also important. Quiet inflows suggest investors are waiting for clearer signals. Silver typically follows gold during sentiment shifts, but any divergence may signal an opportunity worth considering. The Gold/Silver ratio is one tool to identify such imbalances. A widening ratio could indicate that silver is undervalued compared to gold, but it’s crucial to time entries accurately. The current macro and technical situation recommends keeping positions short-term and flexible. With no significant breakout yet, committing to long-term contracts would be premature. We view pullbacks near support levels as temporary until macro conditions confirm a trend reversal or establish a new range. Short-term volatility events, including PMI data from Asia and updates on interest rate guidance from the Federal Reserve, could break the current stalemate. For now, observing how prices react at the edges of their current range—both technically and sentimentally—remains the best approach.

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