HG MARKETS:

Silver prices (XAG/USD) advanced during European trading hours on Tuesday, reaching approximately $33.30, as investor sentiment shifted amid renewed concerns over US-China trade relations. The white metal found support from rising global uncertainty, a common catalyst for precious metal demand due to their safe-haven appeal.

The latest wave of caution in the market was triggered by remarks from US Treasury Secretary Scott Bessent, who suggested that the onus is on China to initiate de-escalation in the ongoing trade dispute. Speaking in an interview on CNBC’s Squawk Box on Monday, Bessent stated, “I believe that it’s up to China to de-escalate, because they sell five times more to us than we sell to them.” While he expressed optimism regarding trade negotiations with other nations, his tone signaled a more entrenched stance toward Beijing.

Bessent’s comments reinforced the view that the primary trade conflict will persist between Washington and Beijing. Consequently, investors are bracing for sustained geopolitical and economic tensions, which tend to favor silver due to its role as a hedge against uncertainty.

In parallel, the US Dollar (USD) edged higher ahead of the release of the US Job Openings and Labor Turnover Survey (JOLTS) data for March, scheduled for 14:00 GMT. The US Dollar Index (DXY), which measures the greenback against a basket of six major currencies, rose to near 99.30. Market expectations are for job openings to register at 7.5 million, slightly below the 7.56 million figures reported in February.

This week, investor attention will remain focused on a series of high-impact US economic data releases, most notably the upcoming Nonfarm Payrolls (NFP) report. These indicators will be closely analyzed for clues on the Federal Reserve’s monetary policy trajectory.

From a technical perspective, silver’s short-term outlook remains constructive. The metal continues to trade above its 20-day Exponential Moving Average (EMA), currently around $32.73, suggesting continued underlying strength. However, the 14-day Relative Strength Index (RSI) has struggled to breach the 60.00 level. A decisive move above this threshold could signal the start of fresh bullish momentum.

On the upside, immediate resistance is seen at the March 28 high of $34.60, while initial support is located at the April 11 low of $30.90. As long as silver maintains its position above key moving averages and market sentiment remains risk-averse, the path of least resistance appears to be to the upside.