- Silver prices face down pressure as the US dollar is strengthened, driven by a rebound in 2 -year American treasure yield.
- Silver could find support in the persistent demand for safe refuge driven by the growing economic uncertainty.
- The Economic Advisor of the White House, Kevin Hassett, confirmed that President Trump is exploring legal options to dismiss the president of the Fed, Jerome Powell.
The price of silver (xag/usd) falls slightly during the Asian session on Tuesday, quoting around $ 32,60 per Troy ounce, after registering profits in the previous session. The gray metal is under pressure as the US dollar (USD) recovers force. The US dollar index (DXY), which measures the value of the dollar against six main currencies, remains about 98.30, supported by a rebound in the US 2 -year treasure yield, now at 3.77%.
However, silver could recover impulse as the demand for safe refuge persists in the middle of continuous economic uncertainty. The DXY recently fell to a minimum of three years after US President Donald Trump intensified the pressure on the Federal Reserve (FED), urging aggressive rates cuts and, according to reports, exploring the dismissal of the president of the FED, Jerome Powell.
The Economic Advisor of the White House, Kevin Hassett, confirmed that Trump is investigating the legal foundations to dismiss Powell. In a publication in Truth Social, Trump also warned that the economy could stagger unless the Fed acts quickly to reduce rates.
This political increase has promoted the demand for safe refuge assets such as La Plata. The feeling of investors is also shaken by continuous stagnation in global trade negotiations, with China resist Trump’s tariff tactics. In addition, Trump’s proposal to investigate critical mineral imports has fueled the fears of slower growth and higher inflation, factors that could continue to support silver prices.
FAQS SILVER
Silver is a highly negotiated precious metal among investors. Historically, it has been used as a value shelter and an exchange means. Although it is less popular than gold, operators can resort to silver to diversify their investment portfolio, for their intrinsic value or as a possible coverage during periods of high inflation. Investors can buy physical silver, in coins or bullion, or negotiate it through vehicles such as the funds quoted in the stock market, which follow their price in international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can cause the price of silver to shoot due to its safe refuge status, although to a lesser extent than that of gold. As an asset without performance, silver tends to climb with lower interest rates. Its movements also depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (XAG/USD). A strong dollar tends to maintain the price of silver at bay, while a weaker dollar probably drives rising prices. Other factors such as investment demand, mining – silver supply is much more abundant than gold – and recycling rates can also affect prices.
Silver is widely used in the industry, particularly in sectors such as electronics or solar energy, since it has one of the highest electrical conductivities of all metals, surpassing copper and gold. An increase in demand can increase prices, while a decrease tends to reduce them. The dynamics in US economies, China and India can also contribute to price fluctuations: for the US and particularly China, its large industrial sectors use silver in several processes; In India, the demand for consumers for precious metal for jewelry also plays a key role in pricing.
Silver prices tend to follow gold movements. When gold prices go up, silver typically follows the same path, since their status as shelter is similar. The gold/silver ratio, which shows the number of ounces of silver necessary to match the value of an ounce of gold, can help determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that silver is undervalued, or that gold is overvalued. On the contrary, a low ratio could suggest that gold is undervalued in relation to silver.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
