Silver Price Forecast: XAG/USD posts gains near $33.50 after losing over half a percent

• Silver price edges higher after registering more than 0.50% losses in the previous session.
• The dollar-denominated Silver lost ground due to a stronger US Dollar.
• The safe-haven demand for Silver may strengthen amid rising US economic concerns.

Silver price (XAG/USD) recovers its recent losses registered in the previous session, trading around $33.30 per troy ounce during the Asian hours on Wednesday. However, the precious metals, including Silver, faced selling pressure amid a strengthening US Dollar (USD).

The dollar-denominated Silver lost its shine as a higher US Dollar makes it expensive for foreign buyers. The Greenback received support after Japan hinted at potential cuts in government debt issuance, boosting global bond markets and putting downward pressure on US yields. At the time of writing, the 10- and 30-year yields on US Treasury bonds are standing at 4.46% and 4.97%, respectively.

Additionally, the safe-haven demand for Silver weakened due to alleviated trade tension between the United States (US) and the European Union (EU). US President Donald Trump extended the tariff deadline on imports from the EU from June 1 to July 9. On Monday, the Brussels agreed to speed up trade talks with the United States to avoid a transatlantic trade war.

However, the safe-haven Silver gains ground due to rising fears over the US economy amid growing debt issues. US President Donald Trump's "One Big Beautiful Bill" is set to be voted on in the Senate. The Bill is expected to raise the deficit by $3.8 billion as newly added provisions, including tax cuts, spending increases, and raising the debt ceiling. This could raise the risk of bond yields staying higher and keep borrowing costs higher for consumers, businesses, and governments.