Silver price (XAG/USD) trades in a tight range near $30.30 in Monday’s European session. The white metal consolidates as investors shift focus to United States (US) President-elect Donald Trump’s swearing ceremony.

Ahead of Trump’s inauguration, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, declines to near 109.00. 10-year US Treasury yields rise to near 4.64%. Higher yields on interest-bearing assets increase the opportunity cost of holding an investment in non-yielding assets, such as Silver. Generally, higher yields limit the upside in the Silver price.

Investors expect Donald Trump to tighten immigration policies, lower taxes, and raise import tariffs under his administration, which would boost growth and inflationary pressures in the United States (US) economy. This would force the Federal Reserve (Fed) to keep interest rates elevated for longer. Historically, the appeal of the Silver improves in a highly inflated environment. However, higher for longer interest rates bode poorly for Silver.

On the geopolitical front, easing tensions between Israel and Hamas in the Middle East has diminished safe-haven demand. Both nations released some hostages on Sunday, which appears to be a meaningful move to an end to the 15-month-old war in Gaza.

Silver technical analysis

Silver price struggles near the upward-sloping trendline around $30.85, which is plotted from the 29 February 2024 low of $22.30 on a daily timeframe.

The white metal discovered strong buying interest near the 200-day Exponential Moving Average (EMA) around $29.45 but struggles to sustain above the 50-day EMA, which is around $30.30.

The 14-day Relative Strength Index (RSI) faces pressure near 60.00. A fresh bullish momentum would trigger if it manages to break above 60.00.

Silver daily chart

(Click on image to enlarge)

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