Select Language

Silver Price Forecast: XAG/USD drifts lower below $36.50 on rising Middle East tensions

Breaking news

Silver Price Forecast: XAG/USD drifts lower below $36.50 on rising Middle East tensions

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.06.16 13:03
Silver Price Forecast: XAG/USD drifts lower below $36.50 on rising Middle East tensions

update 2025.06.16 13:03

  • Silver price loses ground to near $36.20 in Monday's Asian session. 
  • The US UoM Consumer Sentiment Index improved in June.
  • Geopolitical risks might help limit Silver's losses. 

The Silver price (XAG/USD) edges lower to around $36.20 during the Asian trading hours on Monday. The recovery in the Greenback weighs on the USD-denominated commodity price. However, the potential downside seems limited amid the escalating geopolitical tensions in the Middle East. 

The upbeat US economic data released on Friday could provide some support to the US Dollar (USD). The University of Michigan Consumer Sentiment Index improved for the first time in six months, with the index rising to 60.5 in June from 52.2 in the previous reading. This reading came in above the market estimations of 53.5.

On the other hand, markets fear the Israel-Iran conflict could spill over into regional conflict, which boosts safe-haven assets like Silver.  Israel started attacks on Iran on Friday, targeting nuclear facilities and missile factories and killing military leaders. Semi-official Iranian media outlet Mehr News reported on Sunday that the fourth phase of Iran's operation against Israel has begun. Iranian officials underscored that they would "respond firmly to any adventurism" from Israel.

The US Federal Reserve (Fed) policy meeting on Wednesday will be closely watched. The Fed is anticipated to keep interest rates steady at its June meeting. However, futures markets expect two rate cuts by year-end, possibly starting in September, bolstered by tame inflation data last week. 

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

 : 2025.06.16

Update

Last updated

 : 2025.06.16

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

Dow Jones Industrial Average rebounds on hope for easing Middle East tensions

The Dow Jones Industrial Average (DJIA) found firmer footing on Monday, kicking off the new trading week on a high note and paring away most of the late-week losses that pushed indexes into the red last Friday.
New
update2025.06.17 02:29

USD/JPY steady as traders eye BoJ interest rate decision

The Japanese Yen (JPY) is treading water against the US Dollar (USD) on Monday as traders sit on the sidelines ahead of the Bank of Japan's (BoJ) policy announcement, scheduled for Tuesday.
New
update2025.06.17 02:09

AUD/USD hits fresh YTD high on hopes of Israel-Iran de-escalation

The Australian Dollar (AUD) strengthened against the US Dollar (USD) on Monday, buoyed by improved risk sentiment amid easing geopolitical tensions. 
New
update2025.06.17 01:16

Trump urges Iran to negotiate, floats G7 shake-up

US President Donald Trump said that "Iran is not winning this way," adding that they should talk "before it's too late." He said that Iranians want to talk about a de-escalation. He also delivered some trade comments focused on Canada.
New
update2025.06.17 01:00

GBP/USD rebounds above 1.36 as Israel-Iran conflict deepens, Dollar weakens on risk shift

The GBP/USD surged during the North American session, rising back above the 1.36 figure as hostilities within the Israel-Iran conflict escalated over the weekend and continued into the new week. At the time of writing, the pair trades at 1.3600, gaining 0.27%.
New
update2025.06.17 00:24

EUR/USD extends gains as DXY slides to near three-year low, Empire State Index slumps

The Euro (EUR) is climbing against the US Dollar (USD) at the start of the week, rebounding from Friday's risk-off dip triggered by hostilities between Israel and Iran.
New
update2025.06.16 23:50

Oil Price Forecast: WTI eases as markets eye Israel-Iran conflict, hopes for de-escalation

WTI Oil prices are easing on Monday, retracing part of Friday's nearly 6% surge after slipping from the key $70 level, now holding as resistance. 
New
update2025.06.16 23:23

Iran wants to de-escalate hostilities with Israel - WSJ

The Wall Street Journal reported on Monday that Iran seeks talks with the United States (USD) and Israel and sends messages via Arab intermediaries to end hostilities, per Reuters.
New
update2025.06.16 23:03

Indian Rupee firms up as trade data, softer Oil prices offset geopolitical jitters

The Indian Rupee (INR) strengthens against the US Dollar (USD) on Monday, halting a two-day losing streak as the US Dollar Index (DXY) slips lower and fresh trade data boosts sentiment.
New
update2025.06.16 22:08

Israel PM Netanyahu: We are telling citizens of Tehran to evacuate

Israel's Prime Minister (PM) Benjamin Netanyahu said on Monday that the Israeli air force is in control of the skies over Tehran, per Reuters.
New
update2025.06.16 21:55

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