Silver attempts to break higher as demand for safe-haven assets increases on Tuesday.
Renewed concerns about tariffs have dampened investors' optimism
XAG/USD shows hesitation above a key support level at $35.40.
Silver (XAG/USD) is extending its rebound from Monday’s lows at $35.40 to intra-day highs at $36.50 so far, with precious metals supported by higher demand for safe havens, amid an increasingly cautious market sentiment.
Trump’s comments complaining about the lack of progress on the trade talks with Japan and Treasury Secretary Scott Bessent’s threats to introduce tariffs on July 9 despite ongoing negotiations have revived concerns about the global trade outlook and have dampened investors’ appetite for risk.
Technical Analysis: XAG/USD hesitates above a key support at $35.40
The pair attempted to break higher, favoured by the higher appetite for safe assets on Tuesday, but it is struggling to consolidate above Monday’s high at $36.25, while the 4-hour RSI wavers around the 50 level, which divides the bullish from the bearish territory.
From a wider perspective, the precious metal remains trading within the last three weeks’ range, between $35.40 and $37.35, consolidating gains after having rallied beyond 10% from Early May lows. The Doji candles on the daily chart. emphasizes the market's hesitation at current levels,
On the downside, a break of the mentioned $35.40 level would confirm a bearish H&S pattern, a common figure to anticipate trend shifts, and increase pressure towards $34.10 (June 4 low). The figure’s measured target is at $33.43.
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