Trump’s plans to impose tariffs on countries that turn away from the USD for international transactions have increased demand for the dollar, dampening interest in silver as a riskier alternative.
China’s economic data fails to lift silver
Economic data from China offered mixed signals for silver. The official Manufacturing Purchasing Managers’ Index (PMI) rose slightly from 50.2 to 50.3 in November, while the Caixin Manufacturing PMI rose from 50.3 to 51.5, indicating resilience in private sector manufacturing.
However, the NBS Non-Manufacturing PMI fell to 50.0, indicating slower growth in the services sector.
While there is optimism about possible stimulus from China, this has not translated into stronger silver prices amid USD dominance.
Key data to keep an eye on this week
Investors are keeping a close eye on the US economic calendar, with a focus on the ISM Manufacturing PMI and the Nonfarm Payrolls (NFP) report. These releases are likely to shape expectations for Federal Reserve policy and drive market movements in the near term.
Short-term forecasting
Silver (XAG/USD) remains under pressure, trading around $30.17 while USD is strong. Key support at $30.02 threatens to fall further, while a break above $30.25 could signal recovery potential.