Silver Price Forecast: XAG/USD falls below $92.00 as safe-haven demand wanes
Silver price slumps to around $91.80 in Thursday’s Asian session, down 0.92% on the day.
Trump eased tariff threats linked to Greenland, reducing demand for safe assets like Silver.
The Fed is likely to leave its key rate unchanged through this quarter and possibly until Chair Powell's tenure ends in May.
Silver price (XAG/USD) tumbles to near $91.80 during the Asian trading hours on Thursday. The white metal falls after reaching record highs as traders react to easing tariff threats and profit booking.
US President Donald Trump on Wednesday withdrew a threat to impose tariffs on eight nations for their stance on Greenland, saying he had reached the outlines of a deal with NATO on the island's future. Hopes for a solution in Trump’s ambitions for Greenland dampen demand for safe-haven assets such as Silver.
"So then the announcement on the European tariffs sent the stock market higher, erased most of the gains and put some pressure on metals," said RJO Futures senior market strategist Bob Haberkorn.
Economists expect the US Federal Reserve (Fed) to hold its key interest rate until Fed Chair Jerome Powell’s term ends in May, according to Reuters. The view that the US central bank can keep interest rates higher for longer generally underpins the US Dollar (USD) and weighs on the non-interest-bearing assets like Silver.
Germany's Finance Minister Lars Klingbeil warned against premature optimism after Trump backed off threats to impose tariffs as leverage to seize Greenland. Meanwhile, US Treasury Secretary Scott Bessent stated US allies were enraged by Trump’s threats to “sit back” and “take a deep breath,” avoiding retaliation. Any signs of a renewed trade war or rising tensions between the US and Europe could boost the safe-haven flows, benefiting the white metal.
The above content was completed with the assistance of AI and has been reviewed by an editor.
