Silver Price Forecast: XAG/USD Rises Near $31.50 as US Dollar Weakens
Silver (XAG/USD) prices continued to strengthen for the second straight day, trading around $31.40 per troy ounce during the Asian session on Tuesday.
Dollar-denominated silver prices recovered from a two-month low as the US Dollar (USD) witnessed profit-taking selling after the recent rally. The rally was driven by expectations of fewer Federal Reserve (Fed) interest rate cuts and optimism about a better US economic performance under the incoming Trump administration.
Meanwhile, silver as a safe-haven asset has seen increased demand amid rising geopolitical tensions. US President Joe Biden authorized Ukraine to use US-made weapons to carry out attacks deep inside Russia, a move that raised concerns in the region.
In response, the Kremlin issued a warning on Monday, vowing to retaliate against what it called a reckless decision by the Biden administration. Russia has previously warned that such a move could significantly increase the risk of confrontation with NATO.
Source: FXStreet