Silver Price Forecast: XAG/USD falls to near $36.50 despite renewed risk aversion

• Silver price struggles despite renewed concerns about the independence of the US Federal Reserve.
• President Trump may announce his preferred candidate to lead the Federal Reserve next year.
• Iranian Foreign Minister Abbas Araghchi refused to resume nuclear negotiations with the United States.

Silver price (XAG/USD) edges lower after registering gains in the previous two sessions, trading around $36.50 per troy ounce during the Asian hours on Friday. The downside of the prices of the precious metals, including Silver, could be restrained due to renewed concerns over the US Federal Reserve's (Fed) independence.

US President Donald Trump called, at the Hague on the sidelines of the NATO summit, the Federal Reserve Chair Jerome Powell "terrible" and shared that he has several potential successors in mind. "I know within three or four people whom I'm going to pick." Trump could weaken Powell's authority by announcing his preferred candidate by September or October to lead the central bank next year.

Moreover, traders may adopt caution due to the potential for weakening market sentiment, driven by the recent comments from the Iranian Foreign Minister Abbas Araghchi. Araghchi said that Tehran has no intention of resuming nuclear negotiations with the United States. "No agreement or arrangement has been made to resume negotiations. Neither any promise has been given, nor any discussion has taken place on this matter," He added as per CNN.

US Gross Domestic Product (GDP) showed a 0.5% contraction in the first quarter, came in worse than the previous estimate and the market expectation of -0.2%. The downbeat GDP data further supports dovish expectations from the Fed; however, this was offset by Jobless Claims falling to a five-week low at 236K and Durable Goods Orders posting a 16.4% increase, the biggest gain in 11 years. Markets now await the PCE inflation report later for the Fed's further direction.