Silver Price Forecast: XAG/USD remains below $30.50 after paring losses

• Silver prices fell by nearly 3% following reports that Israel and Hezbollah are close to reaching a ceasefire agreement.
• President-elect Donald Trump plans to impose tariffs on imports from Mexico, Canada and China.
• The non-yielding Silver struggled due to bond market optimism following the selection of Scott Bessent as the US Treasury Secretary.

Silver price (XAG/USD) hovers around $30.40 per troy ounce during the Asian trading hours on Tuesday, following a nearly 3% drop in the previous session. This downside risk for safe-haven assets like Silver metal is linked to reports suggesting that Israel and Hezbollah are close to reaching a ceasefire agreement.

Additionally, the price of dollar-denominated Silver has been pressured by a stronger US dollar (USD) after President-elect Donald Trump announced plans to impose a 25% tariff on all imports from Mexico and Canada starting on his first day in office, alongside an additional 10% tariff on goods from China. A stronger US dollar makes precious metals more expensive for foreign buyers, negatively affecting Silver demand.

The non-yielding Silver faced downward pressure due to optimism in the bond market following the selection of Scott Bessent as US Treasury Secretary in the incoming administration. Bessent has advocated for a phased approach to trade restrictions and expressed a willingness to negotiate tariff levels in coordination with President-elect Donald Trump.

However, Tuesday's less hawkish comments from Federal Reserve (Fed) officials may have offered some support for Silver prices. Chicago Fed President Austan Goolsbee suggested that the Fed is likely to continue lowering interest rates toward a neutral stance that neither stimulates nor restricts economic activity. Meanwhile, Minneapolis Fed President Neel Kashkari pointed out that another rate cut could be considered at the Fed's December meeting, according to Bloomberg.

Investors are now focusing on the Federal Reserve's November meeting minutes, set to be released later in the North American session. These minutes could offer crucial insights into the central bank's direction on monetary policy.