Silver Approaches $36: Peace Signal or New Threat on the horizon?
Silver (XAG/USD) prices experienced a moderate increase approaching $35.95 in Wednesday morning trading in Asia. This strengthening was driven by the weakening US Dollar, which made the price of dollar-denominated commodities more attractive to international buyers. Market players are also waiting for an important speech from Federal Reserve Chairman Jerome Powell scheduled for today, looking for clues on the direction of future interest rate policy.
Another factor that weighed on the US Dollar was the decline in consumer confidence in the United States. Data from the Conference Board showed that the consumer confidence index fell to 93 in June, below market expectations. Uncertainty over President Donald Trump's tariff policy also fueled market concerns, which ultimately added pressure on the Dollar and supported Silver prices.
Meanwhile, the geopolitical situation in the Middle East remains a concern. Although the ceasefire between Iran and Israel has so far appeared to be respected by both parties, the market remains vigilant. Investors are watching for possible escalation, especially after Israeli Prime Minister Benjamin Netanyahu said he was ready to launch new attacks if Iran resumes building its nuclear project. Rising tensions could drive demand for safe haven assets like Silver in the near term.
Source: Newsmaker
