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Silver Price Forecast: XAG/USD edges lower to near $32.50 as US Dollar stages a recovery

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Silver Price Forecast: XAG/USD edges lower to near $32.50 as US Dollar stages a recovery

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New update 2025.04.22 11:40
Silver Price Forecast: XAG/USD edges lower to near $32.50 as US Dollar stages a recovery

update 2025.04.22 11:40

  • Silver prices face downward pressure as the US Dollar strengthens, buoyed by a rebound in the 2-year US Treasury yield.
  • Silver may find support from persistent safe-haven demand driven by growing economic uncertainty.
  • White House economic advisor Kevin Hassett confirmed that President Trump is exploring legal options to remove Fed Chair Jerome Powell.

Silver price (XAG/USD) dips slightly during Tuesday's Asian session, trading around $32.60 per troy ounce, after posting gains in the previous session. The grey metal is under pressure as the US Dollar (USD) regains strength. The US Dollar Index (DXY), which measures the Greenback against six major currencies, hovers near 98.30, supported by a rebound in the 2-year US Treasury yield, now at 3.77%.

However, Silver could regain momentum as safe-haven demand persists amid ongoing economic uncertainty. The DXY recently fell to a three-year low after US President Donald Trump intensified pressure on the Federal Reserve (Fed), urging aggressive rate cuts and reportedly exploring the dismissal of Fed Chair Jerome Powell.

White House economic advisor Kevin Hassett confirmed that Trump is looking into the legal grounds for removing Powell. In a Truth Social post, Trump also warned that the economy could falter unless the Fed acts quickly to lower rates.

This rising political has boosted demand for safe-haven assets like Silver. Investor sentiment is also shaken by the continued stalemate in global trade talks, with China pushing back against Trump's tariff tactics. Additionally, Trump's proposed probe into critical mineral imports has stoked fears of slower growth and higher inflation--factors that may continue to support Silver prices.

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

 : 2025.04.22

Update

Last updated

 : 2025.04.22

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