Silver Holds Firm Amid Dollar Weakness
Silver prices held steady around $36 per ounce on Tuesday following a strong performance in June, underpinned by a weaker dollar amid bets on deeper Federal Reserve rate cuts, rising fiscal concerns, and persistent trade uncertainties.
A softer dollar typically boosts demand for dollar-denominated commodities like silver by making them more affordable to foreign buyers. Investors are now turning their attention to upcoming US jobs data, as signs of weakness in the labor market may strengthen the case for a rate cut as early as July.
Meanwhile, market participants are closely monitoring the US Senate’s efforts to pass President Trump’s expansive tax-cut and spending package before the July 4 deadline. The bill is projected to add $3.3 trillion to the national debt, further fueling fiscal concerns.
On the trade front, attention remains focused on whether the US can finalize agreements with key partners before the expiration of Trump’s 90-day tariff reprieve next week.
Source: Trading Economics
