Silver Price Forecast: XAG/USD maintains position around $34.50 due to safe-haven demand

• Silver price receives support from increased safe-haven demand amid rising economic uncertainty.
• The weaker US economic data increased the odds of the Fed delivering rate cuts twice in 2025.
• President Trump called upon Fed Chair Powell to lower the policy rate after the ADP employment data.

Silver price (XAG/USD) edges higher after registering losses in the previous two successive sessions, trading around $34.50 per troy ounce during the Asian hours on Thursday. Prices of the precious metals, including Silver, receive support from safe-haven flows amid growing global economic and political uncertainty.

The non-yielding assets like Silver receive support after the release of soft economic data from the United States (US), which reinforced the odds of the Federal Reserve (Fed) reducing interest rates at least twice in 2025.

Institute for Supply Management's (ISM) Services Purchasing Managers Index (PMI) declined to 49.9 in May, from 51.6 in April. This reading surprisingly came in weaker than the expected 52.0. Meanwhile, US ADP private sector employment rose 37,000 in May, against a 60,000 increase (revised from 62,000) recorded in April, far below the market expectation of 115,000.

Traders will likely observe the US Balance of Trade and the weekly Initial Jobless Claims later in the North American session. Focus will shift toward Friday's Nonfarm Payrolls to gain further insights into the Fed's policy outlook.

US President Donald Trump called upon, in a post published on Truth Social on Wednesday, Federal Reserve (Fed) Chairman Jerome Powell to lower the policy rate. "ADP NUMBER OUT!!! "Too Late" Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES," Trump said.

On Wednesday, Minneapolis Fed President Neel Kashkari noted that the labor market is showing some signs of slowing down. However, persistent uncertainty prevails over the economy, and the Fed must stay in wait-and-see mode to assess how the economy responds to the uncertainty.