Silver Price Forecast: XAG/USD trades firmly near $38, awaiting new FOMC member

• Silver price demonstrates strength around $38.00 as Trump to announce Fed Kugler's replacement this week.
• Trump's comments indicate that US Kevin Hassett, and former Fed Governor Kevin Warsh are potential candidates for Fed Chair.
• Trump stated that he will announce tariffs on semiconductors, chips, pharmaceuticals after this week.

Silver price (XAG/USD) holds onto gains around $38.00 during the European trading session on Wednesday. The white metal trades firmly, while investors await the entry of new member into the Federal Open Market Committee (FOMC) this week.

On Tuesday, United States (US) President Donald Trump confirmed, while speaking to reporters, that he will announce the replacement of Federal Reserve (Fed) Governor Adriana Kugler this week, who resigned on Friday.

Market experts believe that the entry of Trump's candidate into the rate-setting committee will increase support for the resumption of the monetary-expansion cycle. Trump has criticized the Fed, especially Chair Jerome Powell, a several times for not lowering interest rates. Such a scenario will be favorable for non-yielding assets, such as Silver.

Meanwhile, US President Trump has also narrowed options for Jerome Powell's successor to four and will announce his candidate soon. We're also looking at the Fed chair, and that's down to four people right now, Two Kevins and two other people," Trump said in an interview with CNBC on Tuesday. His comments signal that White House economic adviser Kevin Hassett, former Fed Governor Kevin Warsh are potential candidates to step in place of Powell.

Additionally, renewed fears of sectoral tariffs by President Trump have increased demand for safe-haven assets, such as Silver. Trump said on Tuesday that he will announce tariffs on "semiconductors and chips, and pharma" in the next week or so.

Silver technical analysis

Silver price clings to three-day gains near $38.00 on Wednesday. The white metal strives to return above the 20-day Exponential Moving Average (EMA), which trades around $37.65.

The 14-day Relative Strength Index (RSI) oscillates around 50.00, suggesting that the asset lacks momentum.

Looking down, the June 24 low of $35.28 will act as key support for the major. On the upside, the June 30 high near $38.25 will be a critical hurdle for the pair.

Silver daily chart