Silver faces headwinds from the strengthening dollar
Silver (XAG/USD) is trading around 30.63 and has hit an intraday 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 makes it sensitive to market sentiment, which has recently shifted toward riskier investments.
Despite easing geopolitical tensions and speculation surrounding US President Donald Trump’s tariff policies, silver remains exposed to fluctuations in investor interest. Upcoming economic data releases and central bank decisions will likely determine the next move for silver prices.
The US dollar has remained stable, driven by higher interest rates and market uncertainty about Trump’s trade policies. Investors are closely watching his statements 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 expect at least two cuts this year, which could support gold and silver prices in the medium term.
Major events in the future, including US weekly jobless claims and the Bank of Japan’s policy decision, could drive further volatility in the precious metals market.
Short-term forecasting
Gold (XAU/USD) remains under bearish pressure and is trading below key resistance at 2,763.70. A break below 2,746.21 could accelerate the decline, while expectations for rate cuts provide potential support.