Select Language

Silver Price Forecast: XAG/USD edges higher above $36.00 on softer US Dollar, rising demand

Breaking news

Silver Price Forecast: XAG/USD edges higher above $36.00 on softer US Dollar, rising demand

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.06.26 14:02
Silver Price Forecast: XAG/USD edges higher above $36.00 on softer US Dollar, rising demand

update 2025.06.26 14:02

  • Silver price drifts higher to near $36.35 in Thursday's early Asian session.
  • Trump's attacks threaten Fed credibility, weighing on the US Dollar. 
  • Rising demand for industrial uses supports the Silver price. 

The Silver price (XAG/USD) attracts some buyers to around $36.35 during the early European session on Thursday, bolstered by a weaker US Dollar (USD). Traders will take more cues from the final US Q1 GDP Growth Rate and Fedspeak later on Thursday. 

The Greenback faces some selling pressure due to concerns about the future independence of the US Federal Reserve (Fed). This, in turn, provides some support to the USD-denominated commodity price, as a weaker USD makes Silver cheaper for foreign buyers. US President Donald Trump said that he is selecting Fed Chair Jerome Powell's replacement by September or October. 

Furthermore, rising demand for industrial uses might contribute to silver's upside. According to the Silver Institute, global silver demand is estimated to reach a new record in 2025, led by industrial use in photovoltaics and electronics, as well as a recovery in jewelry and silverware. 

Markets have priced in the possibility of a rate cut at the Fed's next meeting in July to 25%, up from just 12% a week ago, and priced in 64 basis points (bps) of reductions by year-end, up from around 46 bps last week, according to Reuters. Traders will take more cues from the US GDP data later on Thursday. Any surprise upside in economic data could lift the US Dollar and undermine the Silver price in the near term. 

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

 : 2025.06.26

Update

Last updated

 : 2025.06.26

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

USD/JPY plummets below 144.00 amid Trump-Powell policy tensions

The USD/JPY pair is down over 0.8% to near 143.75 during European trading hours on Thursday.
New
update2025.06.26 19:56

EUR/USD hits 1.17 as European optimism grows - Rabobank

The break above EUR/USD1.17 today is further evidence of both USD weakness and the attractiveness of the European renaissance story, Rabobank's FX analyst Jane Foley reports.
New
update2025.06.26 19:52

USD/CNH: Chance of dipping below 7.1600 - UOB Group

Soft underlying tone suggests US Dollar (USD) could dip below 7.1600 against Chinese Yuan (CNH); the major support at 7.1450 is likely out of reach for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.06.26 19:26

USD/CAD extends losses below 1.3700 on broad-based US Dokllkar weakness

The US Dollar has reversed Wednesday's mild recovery and is accelerating its downtrend on Thursday as Trump's attacks on the Fed's independence and reviving fears that unilateral trade tariffs might lead to stagflation are crushing confidence in the US Dollar.US President Trump called Fed Chair Pres
New
update2025.06.26 19:24

USD/JPY: Rapid buildup in momentum suggests further USD declines - UOB Group

Rapid buildup in momentum suggests further US Dollar (USD) declines that could potentially reach 144.25 against Japanese Yen (JPY). In the longer run, USD appears to have moved into a range trading phase between 143.50 and 146.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.06.26 19:24

The Big Berlin Bill: Lifting growth forecasts for 2025 and 2026 - Deutsche Bank

This week the German government took a large step towards implementing the fiscal regime shift that it initiated with the historic reform of the debt brake, Deutsche Bank's economists report.
New
update2025.06.26 19:20

USD/MXN downtrend set to resume - Société Générale

USD/MXN remains under pressure after confirming a breakdown from a multi-month consolidation. With a rounding top in place and resistance capped at 19.44, the pair appears poised to resume its downtrend toward key support levels, Société Générale's FX analysts note.
New
update2025.06.26 19:12

NZD/USD: Major resistance at 0.6090 is probably out of reach - UOB Group

Further New Zealand Dollar (NZD) advance is likely against US Dollar (USD), but the major resistance at 0.6090 is probably out of reach.
New
update2025.06.26 19:02

EUR/USD follows the trajectory markets saw in 2017-2018 - Société Générale

The US Presidential election race in 2016 brought President Trump to power on 8 November. EUR/USD opened at 1.09 that day and fell to a low of 1.03 amid the chaos of January 2017.
New
update2025.06.26 18:58

ECB's de Guindos: Role of the Euro can expand if the European Union (EU) progresses with reforms

European Central Bank (ECB) Vice President Luis de Guindos said on Thursday, "role of the Euro can expand if the European Union (EU) progresses with reforms."
New
update2025.06.26 18:57

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