Silver faces headwinds from strong dollar
Silver (XAG/USD) hit an intraday low of 30.57 and is trading around 30.63 as a strong dollar and rebound in US Treasury yields weigh on the metal. Silver's dual role as an industrial asset and safe-haven asset makes it susceptible to market sentiment, which has recently shifted toward riskier investments.
Despite easing geopolitical tensions and speculation over President Donald Trump's tariff policies, silver remains subject to fluctuations in investor appetite. Upcoming economic data releases and central bank decisions are likely to shape the next move in silver prices.
The U.S. dollar has held firm against a backdrop of rising yields and market uncertainty over President Trump's trade policies. Investors will be watching his remarks at the World Economic Forum, which could provide insight into future tariff decisions.
President Trump's policies are seen as potentially inflationary, and the Fed may remain cautious about cutting interest rates. However, the market still expects at least two pullbacks this year, which could support gold and silver prices in the medium term.
Important upcoming events, such as the number of weekly unemployment claims in the United States and the Bank of Japan's policy decisions, could cause further volatility in precious metals markets.
short term forecast
Gold (XAU/USD) remains under bearish pressure and is trading below the key resistance level at 2,763.70. A break below 2,746.21 could accelerate the decline, but expectations for a rate cut could provide potential support.
