XAG/USD ticks up to near $38 ahead of Trump-Zelenskyy talks

• Silver price gains marginally to near $38.00 amid caution ahead of meeting between US President Trump and Ukrainian President Zelenskiy.
• The Fed is expected to cut interest rates in September.
• Silver price wobbles near the 20-day EMA around $37.90.

Silver price (XAG/USD) edges higher to near $38.00 during the European trading session on Monday. The white metal attracts slight bids as the market sentiment is slightly cautious, with investors awaiting the meeting between United States (US) President Donald Trump and Ukrainian President Volodymyr Zelenskiy at the White House on Monday.

US Secretary of the State Marco Rubio has confirmed that a bunch of European and NATO members are joining Trump and Zelenskyy at the White House to discuss concessions proposed by Russian leader Vladimir Putin for ending war in Ukraine.

Signs of a truce between Russia and Ukraine would be unfavorable for safe-haven assets, such as Silver, which tends to perform strongly in heightened geopolitical tensions.

However, firm expectations that the Federal Reserve (Fed) will reduce interest rates in the September meeting continue to provide support to the Silver price. Lower interest rates by the Fed bode well for non-yielding assets, such as Silver.

According to the CME FedWatch tool, the probability of the Fed to cut interest rates in September is 82.6%. Traders have remained confident about Fed’s interest rate cuts in the policy meeting next month due to cooling labor market conditions.

Silver technical analysis

Silver price gains marginally to near $38.10 on Monday. The white metal demonstrates a sharp contraction in volatility due to the Descending Triangle formation on a daily timeframe. The horizontal support of the above-mentioned chart pattern is plotted from the July 7 low around $36.16, while the downward-sloping border is placed from the July 23 high near $39.53.

The asset wobbles near the 20-day Exponential Moving Average (EMA), which trades around $37.90, suggesting a sideways trend

The 14-day Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, indicating indecisiveness among market participants.

Looking down, the June 24 low of $35.28 will act as key support for the major. On the upside, the July 23 high near $39.53 will be a critical hurdle for the pair.

Silver daily chart