Silver Faces Headwinds from Strengthening Dollar
Silver (XAG/USD) is trading near 30.63, having hit an intra-day low of 30.57, as the strengthening dollar and recovering Treasury yields weigh on the metal. Silver’s dual role as an industrial and safe-haven asset makes it sensitive to market sentiment, which has recently shifted towards riskier investments.
Despite easing geopolitical tensions and speculation surrounding US President Donald Trump’s tariff policies, silver remains exposed to fluctuations in investor appetite. Upcoming economic data releases and central bank decisions will likely shape the next move for silver prices.
The US dollar has remained steady, driven by higher yields and market uncertainty over Trump’s trade policies. Investors are closely watching his remarks at the World Economic Forum, which could provide insight into future tariff decisions.
Trump’s policies, seen as potentially inflationary, could keep the Fed cautious about rate cuts. However, markets still anticipate at least two reductions this year, which could support gold and silver prices in the medium term.
Key events ahead, including US weekly jobless claims and the Bank of Japan’s policy decision, could introduce further volatility in the precious metals market.
Short-Term Forecast
Gold (XAU/USD) remains under bearish pressure, trading below key resistance at 2,763.70. A break below 2,746.21 could accelerate declines, while rate cut expectations offer potential support.