Silver rallies strongly as it clears 200-day moving average amid trade tensions

Silver prices surged on Friday, overcoming a significant technical barrier with a close at $32.31, marking an increase of 3.46%. The metal pushed past its 200-day moving average of $30.92, entering a crucial resistance zone between $31.45 and $32.19. Analysts suggest that a decisive move above $32.19 could open the door for further gains toward $34.59. While silver has been buoyed by gold's robust performance, trading above $3,200 on the same day, it has not matched gold’s gains due to its heavier reliance on industrial demand, especially from China. As US-China trade tensions simmer, expectations of slowing industrial demand are causing cautious optimism among silver traders. Any decline below $31.45 could trigger profit-taking, maintaining a tight trading range. Key technical indicators suggest a cautious yet bullish sentiment as long as silver maintains its position above critical moving averages. Investors should closely monitor macroeconomic trends, particularly regarding US-China relations and global industrial demand.