Silver holds firm above $32.00 as the US Dollar softens, eyes on $33.00 breakout
Silver (XAG/USD) is trading higher around $32.60 on Tuesday, recovering from intraday lows near $32.13 as the metal regains traction after two straight days of losses. Although it appears to be range-bound, the rebound is supported by a softer US Dollar (USD) and steady investor demand for industrial metals, even as easing geopolitical tensions boost broader investor confidence.
Silver’s safe-haven demand had softened in recent sessions amid signs of geopolitical de-escalation and improving global risk sentiment. Reports that Russia and Ukraine are exploring ceasefire talks have boosted market optimism, while a temporary tariff truce between the US and China further eased global trade tensions. Still, Silver continues to find longer-term support from robust industrial demand. Forecasts from the Silver Institute projects industrial usage will top 700 million ounces in 2025, driven by rising demand from electric vehicles, solar panels, and electronics.
Meanwhile, the US Dollar Index (DXY) retreats near the 100.00 mark, marking a fresh weekly low on Tuesday, as sentiment weakened following Moody’s downgrade of the US credit rating from Aaa to Aa1. The move was driven by rising concerns over ballooning US government debt and an expanding budget deficit. The fiscal outlook has reignited bullishness among bond investors and pressured the Greenback, offering some relief to US Dollar-denominated commodities like Silver.
Source: Fxstreet
