Silver Price Forecast: XAG/USD wobbles near all-time highs around $96 ahead of Trump’s speech
- Silver price holds onto gains near all-time highs around $96 ahead of Trump’s speech in WEF at Davos.
- US-EU disputes over Greenland’s entitlement have been a major drag on the US Dollar.
- EU members warns of retaliatory measures against Trump’s tariff threats.
Silver price (XAG/USD) turns sideways near the all-time high of 95.90 during the early European session on Wednesday. The white metal consolidates as investors await speech from United States (US) President Donald Trump in the World Economic Forum (WEF) at Davos, scheduled at 13:00 GMT.
Trump’s speech will be closely watched by financial market participants as it will indicate what other measures Washington has at disposal to extend the pressure on European Union (EU) members, who are opposing US intentions to acquire Greenland.
So far, US President Trump has announced 10% tariffs on several EU members and the United Kingdom (UK), which will become effective from February 1, and has threatened that he could raise them further.
The appeal of safe-haven assets, such as Silver, has strengthened, in an uncertain geopolitical environment. However, the appeal of US Dollar (USD) and US assets has diminished amid US-EU disputes. Technically, weak US Dollar makes the Silver price an attractive bet for investors.
In response, EU members have called Trump’s tariff threats as “undesirable” and warned of equal retaliatory measures. French President Emmanuel Macron has condemned Trump’s tariff tactic and has stressed the old continent to invoke “anti-coercion instrument”.
Silver price technical analysis
In the daily chart, XAG/USD trades at $94.92. Price holds well above the rising 20-Exponential Moving Average (EMA) at $82.96, keeping the bullish trend intact. The 20-day EMA’s upward slope reinforces positive momentum.
The 14-day Relative Strength Index (RSI) at 73.38 (overbought) underscores strength, though stretched readings could precede brief consolidation.
The distance above the moving average has widened, and trend extension prevails while pullbacks could stall near the rising mean. A close back below the average would weaken the setup, whereas continued acceptance above it would favor further upside. RSI has stayed elevated through recent sessions, confirming momentum; a moderation toward neutral would reset conditions without undermining the broader advance.
