Silver Price Forecast XAG/USD Remains Above Ground
Silver (XAG/USD) price extended its rally after posting slight losses in the previous session, trading around $30.20 per troy ounce during Asian hours on Friday. Traders now focus on the US labor market data including the Nonfarm Payrolls (NFP), for additional insights on the Federal Reserve’s policy direction.
Precious silver, often considered a safe-haven asset, found support amid uncertainty surrounding inflation and potential tariffs under President-elect Trump’s administration, as highlighted by the US Federal Reserve (Fed).
However, the non-yielding metal’s gains could be capped as long-term US Treasury yields continue to rise on ample supply. The 10-year Treasury yield is at 4.68%, while the 30-year Treasury is at 4.92% at the time of writing. This could be attributed to the hawkish Federal Open Market Committee (FOMC) Minutes from its December meeting.
The latest FOMC Meeting Minutes showed that Fed policymakers expressed concerns about inflation and the impact that President-elect Donald Trump’s policies could have. Fed officials have indicated they will move more slowly in cutting interest rates due to uncertainty. Fed officials have forecast two cuts in 2025 from four in their previous forecast at the September meeting.
Rising geopolitical tensions have intensified market volatility, prompting investors to turn to safe haven assets such as silver. On Thursday, four people were killed in a shooting incident in Ukraine, with regional officials attributing one attack to the Russian military and the other to Ukrainian forces. In the Russian-controlled Zaporizhzhia region, two additional deaths occurred when the town of Kamyanka-Dniprovska came under Ukrainian shelling, according to Russian-appointed governor Yevgeny Balitsky, as reported by Reuters. (AL)
Source: Fxstreet
