The Impact of US Tariffs on Precious Metals
Silver and Gold are currently leading the commodity flows amidst recent tariff turmoil, showing a significant breakout after a three-week correction period. The renewed interest in these precious metals is attributed to the ongoing uncertainty in global markets, particularly surrounding trade and geopolitical issues.
Recent Developments in US Tariffs
The situation escalated when the Supreme Court dismantled the IEEPA Liberation Day tariffs, prompting President Trump to invoke Section 122 of the Trade Act of 1974. This led to a temporary 10% global surcharge on imports, which was quickly raised to 15%. This measure is set to last for 150 days, creating immediate uncertainty regarding future US trade policies.
With $133 billion in illegal duties collected under the previous regime, the government faces a budgetary challenge as businesses seek refunds, complicating the Administration's plans.
Performance of Precious Metals in 2026
Gold has emerged as the dominant performer in the precious metals sector, while other metals like Palladium, Platinum, and Copper have struggled to gain traction. The recent tariff developments and anxiety in the Middle East have contributed to the bullish momentum in Gold and Silver.
Investors are advised to be meticulous in their asset selection as the market dynamics shift away from broad rallies to more selective performance.
Technical Analysis of Gold (XAU/USD)
Gold is currently experiencing bullish price action, having established a tight bull channel since reaching $4,844 in mid-February. Key resistance levels to watch include:
- $5,230 - Channel Top
- $5,300 - Pivotal Resistance
- $5,400 - Mini-resistance
- $5,500 to $5,600 - Current All-time Highs
Support levels include $5,100 as a major pivot and $4,400 to $4,500 as pivotal support.
Technical Analysis of Silver (XAG/USD)
Silver is also showing impressive bullish momentum, nearing $90 after breaching its 4H 200-Period MA. Key resistance levels include:
- $92.20 - February 4 highs
- $90 to $95 - Higher Timeframe Resistance
- $100 to $104 - Key psychological resistance
Support levels for Silver are set at $82 to $84 and $70 to $72 as major support levels.