Silver Price News: Silver Ticks Higher as US and China Talk Trade

Silver prices gained around 0.8% on Tuesday, taking support from recent signs that the US and China were prepared to pull back from recent extreme trade measures on their mutual imports.

Prices rose as high as $33.33 an ounce on Tuesday, up from around $32.70 an ounce in late trades on Monday.

Recent fears of global trade war pushed gold prices to all-time highs in April, while silver prices have been more muted as any economic slowdown could dent industrial demand for the metal.

Talks between the two major economies in recent days have eased fears over the worst economic outcomes, allowing some confidence over economic growth to return. That said, the ultimate outcome of the trade stand-off is far from clear as the tariffs are paused for 90 days to allow for negotiations.

Technical analysis

Looking at the technical charts, eyes will be on descending oblique major resistance at $32.86 an ounce. Any sustained break above this level would be taken as a bullish signal for price development in the coming days. Conversely, any downside moves would bring attention to rising oblique minor support at $31.51 an ounce. With the 10-day Relative Strength Index at around 54 and prices trading at levels close to the 20-day moving average at $32.77 an ounce, the technical signals are broadly neutral for now.

Upcoming data/events

Looking ahead, Thursday will bring monthly industrial production figures for the UK, Euro Area and US, providing further clues on the industrial demand picture for silver in several major economies. In addition, eyes will be on the US weekly initial jobless claims figures for an update on America’s labour market and the monthly US Core PPI figures for April, for further clues on US inflation.