Silver Price Forecast: XAG/USD rises above $38.50 on rising demand

• Silver price climbs to the highest level since 2011, around $38.85 in Monday's Asian session. 
• Trump's announcement of a 50% tariff on copper imports triggered a silver price. 
• Rising industrial demand continues to support the Silver price, but the Fed's cautious stance might cap its upside. 

The Silver price ( XAG/USD) attracts some buyers to around $38.85, the highest since 2011 during the Asian trading hours on Monday. The white metal edges higher as US President Donald Trump's shock trade tariff on copper spurred a rush to import silver into the world's largest economy. 

Last week, Trump said that the 50% tariff on copper imports will take effect on August 1. The decision was made after Trump received a national security assessment. It's worth noting that Silver and copper are both used in industrial applications, especially in electronics and clean energy. If copper becomes more expensive due to tariffs, manufacturers may look for cheaper alternatives like the white metal. 

Furthermore, robust industrial demand, driven by green technology applications like solar panels and EVs, combined with supply shortages might contribute to Silver's upside. According to the industry group the Silver Institute, demand for silver is expected to remain strong in the coming years, with the market facing another year in deficit. 

On the other hand, traders remained cautious as the US Federal Reserve (Fed) is widely expected to hold interest rates steady as it waits to see the impact of tariffs on price pressures. This, in turn, could underpin the US Dollar (USD) and weigh on the USD-denominated commodity price, as it makes silver more expensive for buyers using other currencies.