Market Panic, Silver Soars! Who Triggered This Anxiety?
Silver prices (XAG/USD) jumped to $36.50 on Tuesday (01/07), continuing their recovery from Monday's low of $35.40. This increase was driven by increasing demand for safe haven assets such as precious metals, as global market sentiment becomes more wary of risk.
This concern arose after former US President Donald Trump voiced his disappointment over the slow progress in trade negotiations with Japan. At the same time, US Treasury Secretary Scott Bessent threatened to continue imposing new tariffs on July 9, even though talks were still ongoing. This statement raised concerns that global trade tensions could heat up again.
Despite the increase, silver's movement has been limited in the last three weeks, between $35.40 and $37.35. Currently, the price is trying to break through the resistance level of $36.25, but is still struggling to stay above it. The RSI indicator on the 4-hour chart also shows market uncertainty, as it is still fluctuating around the neutral level of 50.
If the price of silver falls below $35.40, then the bearish “head and shoulders” pattern could be confirmed, opening up the potential for a decline to $34.10 or even $33.43. Conversely, if global concerns continue, the metal has the potential to strengthen again, especially if interest in safe assets increases amid uncertain market conditions.
Source: (ayu-newsmaker)
