Select Language

Silver Price Forecast: XAG/USD remains solid near $34.00 amid increased safe-haven demand

Breaking news

Silver Price Forecast: XAG/USD remains solid near $34.00 amid increased safe-haven demand

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.03.14 16:54
Silver Price Forecast: XAG/USD remains solid near $34.00 amid increased safe-haven demand

update 2025.03.14 16:54

  • Silver maintains its position near the five-month high at $33.96, reached on Thursday.
  • Safe-haven demand strengthened after President Trump threatened a 200% tariff on all European wines and champagne.
  • A non-interest-bearing Silver finds support from growing expectations of Fed rate cuts following weaker US inflation data.

Silver price (XAG/USD) continues its upward momentum for the fourth consecutive day, trading around $33.90 per troy ounce during European trading hours on Friday. The precious metal benefits from increased safe-haven demand as global trade tensions increase.

Market concerns intensified after US President Donald Trump threatened 200% tariffs on European wines, champagnes, and other alcoholic beverages in response to the EU's 50% tariff on American whiskey.

Silver, a non-interest-bearing asset, finds support from growing expectations of Federal Reserve (Fed) rate cuts following weaker US inflation data. On Thursday, the US Producer Price Index (PPI) rose 3.2% year-over-year in February, down from 3.7% in January and below the 3.3% forecast. The core PPI, which excludes food and energy, increased 3.4% annually, compared to 3.8% in January.

Meanwhile, Wednesday's Consumer Price Index (CPI) data showed a decline to 2.8% year-over-year from 3.0%, while core inflation fell to 3.1% from 3.3%.

In political developments, Senate Democratic Leader Chuck Schumer announced late Thursday his support for keeping the government open, as the Senate prepares to vote on a GOP stopgap funding bill on Friday.

Additionally, US Commerce Secretary Howard Lutnick stated that the administration plans to balance the budget within President Donald Trump's term, aiming to achieve this over three years.

However, Silver's upside could be limited as the US Dollar (USD) continues to strengthen. A stronger USD makes Silver more expensive for foreign buyers, potentially dampening demand. At the time of writing, the US Dollar Index (DXY), which tracks the USD against six major currencies, is hovering near 104.00.

Silver FAQs

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply - Silver is much more abundant than Gold - and recycling rates can also affect prices.

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals - more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers' demand for the precious metal for jewellery also plays a key role in setting prices.

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

 


Date

Created

 : 2025.03.14

Update

Last updated

 : 2025.03.14

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Gold price pulls back after historic surge past $3,000 on Trump trade woes

Gold prices retreat after hitting a record high, surpassing $3,000, as traders remain uncertain about US President Donald Trump's trade policies.
New
update2025.03.15 06:10

Mark Carney becomes new Canadian Prime Minister, vows to meet Trump at the table

Newly-minted Canadian Prime Minister Mark Carney took over the reigns of Canada from now-former Prime Minister Justin Trudeau on Friday morning, and the fresh Canadian leader wasted no time in declaring his intent to meet US President Donald Trump head-on as the Trump administration spools up a messy, global trade war with nearly all of the US's closest trading partners simultaneously.
New
update2025.03.15 04:44

Dow Jones Industrial Average pares losses on Friday, but remains steeply bearish

The Dow Jones Industrial Average (DJIA) fought back at the brink on Friday, clawing back roughly 500 points following a string of bad losses that saw the Dow Jones crumble 3,373 points, or -7.66%, peak-to-trough over a two-week period.
New
update2025.03.15 04:20

Banxico: Uncertainty clouds Mexico's economic horizon - El Financiero

Banco de Mexico (Banxico) Director of Economic Research Alejandrina Salcedo Cisneros said that uncertainty is having a widespread impact on the country's businesses, so the outlook points to a moderate expansion of regional economies.
New
update2025.03.15 03:54

Mexican Peso defies gloomy data, rockets higher on USD weakness

The Mexican Peso (MXN) rallied against the US Dollar (USD) on Friday, ignoring softer-than-expected economic data revealed during the week that suggests the economy might slow down.
New
update2025.03.15 03:29

GBP/USD slides as UK economy falters ahead of central bank bonanza

The Pound Sterling registers back-to-back bearish days, dropping some 0.14% on Friday against the Greenback after economic data from the UK revealed that the Gross Domestic Product (GDP) contracted.
New
update2025.03.15 00:27

US UoM Consumer Sentiment Index is seen declining to 57.9 in March

US Consumer Sentiment took a dip in early March, according to the preliminary reading of the University of Michigan's Consumer Sentiment Index.
New
update2025.03.14 23:04

EUR/USD briefly back at 1.09 after Trump's tariffs face headwind

The EUR/USD pair edges higher and recovers to 1.0900 at the time of writing on Friday, erasing its sluggish performance from earlier this week.
New
update2025.03.14 22:54

GBP consolidates in mid-1.29s - Scotiabank

Pound Sterling (GBP) is little changed on the session after UK GDP data fell 0.1% in the January month, a little weaker than forecast, Scotiabank's Chief FX Strategist Shaun Osborne notes.
New
update2025.03.14 22:51

EUR/USD: Signs that German parties agree on debt package - Scotiabank

The EUR is tracking higher on the session, with late week dips to the low 1.08 zone prompting some renewed buying interest from bargain hunters.
New
update2025.03.14 22:47

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel