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Indonesia News Portal for Traders | Financial & Business Updates

18 August 2025 16:26  |

Silver Strengthens to $38 Ahead of Trump-Zelenskyy Meeting

Silver prices (XAG/USD) edged higher, approaching $38.00 during European trading on Monday (August 18, 2025). This increase occurred amid cautious market sentiment, with investors focused on the crucial meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy at the White House. Precious metals like silver typically find support when geopolitical tensions escalate, but the market is now awaiting clarity on the direction of peace.

US Secretary of State Marco Rubio confirmed that the meeting will also be attended by several European leaders and NATO members. They will discuss Russian President Vladimir Putin's offer of concessions to end the conflict in Ukraine. If the meeting results in signs of a ceasefire, demand for safe-haven assets like silver could weaken.

However, silver continues to draw support from expectations that the Federal Reserve (The Fed) will soon cut interest rates. Assets like silver, which do not yield a yield, tend to be more attractive when interest rates fall. According to the CME FedWatch tool, the probability of an interest rate cut at the Fed's September meeting currently stands at 82.6%.

Market confidence in the interest rate cut is driven by signs of a weakening US labor market. Therefore, although the potential for peace in Ukraine could depress silver prices, monetary policy factors remain a strong driver for this white metal in the near term. (ayu)

Source: Newsmaker.id

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