Despite a surge in gold and silver prices on Friday amid growing concerns over the safe heaven’s demand after US President Donald Trump’s statement on imposing reciprocal tariffs next week and softening stances on many countries, contracts for the white metals may indicate an advent of a selling spree for the time being.
On Sunday, Japanese Prime Minister Shigeru Ishiba expressed optimism that his country could avoid higher US tariffs as President Donald Trump had recognized Japan’s huge investment in the US and the importance of jobs that it creates in America.
Undoubtedly, there are some factors leading to softness in Trump’s tone if he realizes the destructive side of his hard stance on the tariff front shortly after Europe has already attempted to offer concessions that could lead to a deal.
I anticipate that the suspension of tariffs against Mexico and Canada for one month on Feb. 4 might prove to be the first soft stance by US President Donald Trump that indicates the flexibility could be there according to the need of the time.
This changing scenario on the trade war front indicates the advent of a bearish trend in precious metals and energy.
Technical View
On analyzing the movements of silver futures in different time frames, I anticipate the technical charts confirm this weakness in silver futures.
In the weekly chart, silver futures could remain under bearish pressure due to the formation of an ‘Evening Doji Star’ that could extend this weakness during the next two weeks.
If the silver futures find a sustainable move after a gap down opening next week as last week’s candle has capped the upside at $33.165.
In the daily chart, silver futures remain reluctant to find a sustainable move above the immediate resistance at $33 despite repeated attempts since Feb. 4, 2025.
Take Away for the Traders
I anticipate that the shift in the degree of the hard decision on imposing tariffs according to the need could lessen the fear of a tariff trade war in the short term, and the rest of the impact of retaliatory tariffs will be the next factor for the precious metals’ traders.
Disclaimer: Readers may take any position in silver futures at their own risk because this analysis is only based on observations.