Silver Prices Slide Toward $33.00 as Risk-On Sentiment and USD Strength Weigh In

Silver prices (XAG/USD) fell over 1% on May 27, 2025, approaching the $33.00 mark, driven by a combination of a stronger US dollar (USD) and a risk-on market environment.

The positive sentiment stems from US President Donald Trump delaying 50% tariffs on Eurozone imports from June 1 to July 9, following discussions with EU Commissioner Ursula von der Leyen.

This de-escalation has eased fears of a global trade fallout, reducing demand for safe-haven assets like silver. Real-time market data shows the USD gaining against major currencies, with a 0.48% rise against the Australian dollar, further pressuring silver prices.

US Debt Concerns Cap USD Gains

Growing concerns over US fiscal health may constrain the USD's upward momentum, despite its recent rebound.

Trump’s “Big, Beautiful Tax Bill,” currently under Senate review, is projected to add $3.8 trillion to the already staggering $36.2 trillion national debt over the coming years.

Last week’s downgrade of US debt ratings has intensified fears of a potential debt crisis, prompting a “Sell America” trade sentiment in financial markets.

This backdrop is likely to limit the USD’s strength, offering a potential floor for silver prices as investors remain cautious about the broader economic implications.

Did You Know?
Silver has historically outperformed gold during periods of economic recovery, often gaining 15-20% more in percentage terms due to its industrial demand.

Technical Levels to Watch

From a technical perspective, silver is navigating a choppy consolidation phase after April’s rally. The XAG/USD pair has been unable to break above the $33.70 resistance and is now testing support in the $32.90-33.00 range.

A breach below this zone could see prices slide toward the May 20 low of $32.15, with further downside risk to the range bottom at $31.74.

On the upside, a move above $33.70 could target resistances at $34.15 and $34.60, potentially signaling renewed bullish momentum. Traders are closely monitoring these levels amid heightened market volatility.

ALSO READ | Gold Prices Slide as Trump’s EU Tariff Delay Cools Safe-Haven Demand, Yet U.S. Fiscal Woes Persist

Outlook for Silver Prices

The near-term outlook for silver remains cautious as risk-on sentiment and USD strength dominate market dynamics. However, the looming US debt crisis and potential for renewed safe-haven demand could support silver in the coming weeks.

Real-time investor sentiment suggests a mixed outlook, with some anticipating a deeper correction, while others see geopolitical uncertainties as a catalyst for a rebound.

As markets digest Trump’s trade policy shifts, silver’s price action will likely remain sensitive to both macroeconomic developments and technical thresholds.