XAG/USD Struggles Around $33.00 as Fed officials guide restrictive policy stance
Silver price (XAG/USD) faces selling pressure above the key level of $33.00 in North American trading hours on Friday. The white metal drops as the US Dollar (USD) gains, with Federal Reserve (Fed) officials continuing to guide a restrictive monetary policy stance. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, advances to near 106.75.
On Thursday, Fed Governor Adriana Kugler said that the central bank should keep borrowing rates “in place” for “some time,” noting the net effect of new economic policies by United States (US) President Donald Trump is “highly uncertain” and will depend on the “specifics.”
The scenario of the Fed maintaining a restrictive interest rate stance bodes poorly for precious metals such as Silver price.
Meanwhile, fears of President Trump’s tariff agenda would keep the Silver price on the frontfoot. On Thursday, Trump announced that he could impose tariffs on lumber and forest products, cars, pharmaceuticals, and semiconductors over the next month or sooner. Market participants expect Trump’s tariff agenda will lead to a global economic slowdown.
Investors are also focusing on development in Russia-US talks to end the war in Ukraine. This week, Donald Trump agreed to hold more talks with Russian leader Vladimir Putin for negotiations to have a truce with Ukraine. A positive outcome from peace talks would weaken the safe-haven appeal of the Silver price.
Source : Fxstreet
