Silver Price Forecast: XAG/USD rallies to near $33.20 amid geopolitical and trade worries

• Silver price strengthens and jumps to near $33.20 amid multiple tailwinds.
• US President Trump’s tariff agenda could lead to a global economic slowdown.
• The Fed is expected to maintain a restrictive interest rate stance for longer.

Silver price (XAG/USD) surges almost 1.5% to near $33.20 in European trading hours on Thursday. The white metal strengthens as investors remain concerned over deepening global trade tensions. United States (US) President Donald Trump announced on Wednesday that he is planning to impose tariffs on lumber, cars, semiconductors, and pharmaceuticals over the next month or sooner.

Market participants expect President Trump's tariffs would lead to a global trade war, which would result in an economic slowdown across the globe.

Meanwhile, Donald Trump has also ordered his team to prepare reciprocal tariffs, which are expected to be unveiled in April.

On the geopolitical front, Ukraine President Volodymyr Zelenskyy feeling left out of Russia-US peace talks to end the war in Ukraine has raised some uncertainty. Ukrainian leader has condemned US Trump for initiating peace talks with Russia without his involvement in discussing the issue in Saudi Arabia.

Signs of a slowdown in the Russia-Ukraine peace talks would boost demand for safe-haven assets, such as Silver.

Meanwhile, the safe-haven demand of the US Dollar has remained weak even though traders becoming increasingly confident that the Federal Reserve (Fed) will keep interest rates in the current range of 4.25%-4.50% for longer. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, declines to near 106.90.

Silver technical analysis

Silver price is inch far from revisiting an over three-month high of $33.40, which it posted on February 14. The outlook of the white metal is bullish as the 50-day Exponential Moving Average (EMA) has been sloping higher, which trades around $31.28.

The 14-day Relative Strength Index (RSI) oscillates in the 60.00-80.00 range, suggesting that the momentum is strongly bullish.

Looking down, the upward-sloping trendline from the August 8 low of $26.45 will act as key support for the Silver price around $30.00. While, the October 22 high of $34.87 will be the key barrier.