Silver Rallies on Tariff Fears as Technical Indicators Build Bullish Momentum

As of 08 GMT, Reuters reported silver traded at $33.05 per ounce in London. The metal climbed 1.8% overnight in New York after the US imposed a 100% tariff on foreign films, spurring safe-haven buying.

Asian markets held firm through Tokyo and Hong Kong, while Indian silver in Mumbai and Delhi traded near ₹96.90 per gram. Meanwhile, COMEX futures volumes rose modestly, reflecting renewed speculative interest.

Analysts estimate a fifth consecutive annual supply deficit of 117.6 million ounces, underpinning prices amid record industrial fabrication above 700 million ounces. Bar and coin investment jumped 7% year-to-date, reinforcing the market’s tight structure.

Silver trades at $33.06, above its 20-hour moving average of $33.02 and its 50-hour average of $32.92. The metal also sits above the 200-hour simple moving average near $33.03, confirming the short-term uptrend.

It holds above the Ichimoku cloud, which spans roughly $32.70 to $32.90, signaling positive momentum. Bollinger Bands have tightened, with the upper band at $33.24 and the lower band at $32.77, suggesting consolidation.

The Relative Strength Index stands at 60, indicating balanced momentum without overbought pressure. Market makers voiced cautious optimism, noting structural deficits keep the market far from rebalancing.

Philip Newman of Metals Focus said structural deficits will likely drive further gains. Bob Habercorn added that a gold-silver ratio reversion could push silver above $35.

Dealers reported tight inventories for popular bullion coins and bars, pointing to persistent physical demand. Traders will watch the Fed’s policy outlook and dollar movements for fresh direction.

Global industrial demand merits attention, with Chinese manufacturing data due later this week. Seasonal Indian buying ahead of local festivals could lift regional prices in the near term.