- Silver price remains above $32.30 ahead of US presidential elections
- Trump’s victory in the US could be beneficial for the Dollar and bond yields.
- Investors will also focus on the US ISM Services PMI for October.
The price of Silver (XAG/USD) jumps near $32.60 in the European session on Tuesday. The white metal remains largely sideways above the key $32.30 support ahead of the United States (US) presidential election, which will begin in the New York session. The asset is expected to face strong volatility after the agencies start providing exit surveys.
Traders expect a tight contest between former US President Donald Trump and Democratic candidate Kamala Harris. The outlook for precious metals largely depends on the outcome of the US elections. Trump’s victory could be unfavorable for precious metals, such as Silver, as he promised to increase tariffs on imports and reduce corporate taxes, which will increase price pressures.
The scenario that will improve the outlook for the US Dollar and bond yields in an inflationary environment will drive the need for a restrictive interest rate stance by the Federal Reserve (Fed).
Ahead of the US election, the Dollar Index (DXY), which measures the value of the dollar against six major currencies, drops to around 103.70 but remains within Monday’s trading range. US 10-year Treasury yields teeter near 4.3%.
In Tuesday’s session, investors will also focus on the US ISM Services PMI data for October, which will be released at 15:00 GMT. The agency is expected to show that activities in the services sector expanded at a slower pace, with the index seen at 53.8 versus 54.9 in September.
Silver technical analysis
Silver price is struggling to gain ground near the key horizontal support drawn from the May 20 high at $32.50 on a daily time frame, which previously acted as resistance. The white metal is teetering near the 20-day EMA, which is trading around $32.80.
The 14-day Relative Strength Index (RSI) falls within the range of 40.00-60.00, suggesting that the bullish momentum has ended for now, however, the uptrend remains intact.
Silver daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
