Silver Price Forecast: XAG/USD retreats toward $113.00 on profit-taking pressure

• Silver pulled back from the January 29 record high of 121.66 as profit-taking emerged.

• Silver stays on track for over 60% monthly gains as Iran’s warning keeps geopolitical risks elevated.

• Silver’s safe-haven rally gained support from fading confidence in US assets amid Trump’s dollar comments and Fed criticism.

Silver price (XAG/USD) halts its seven-day winning streak, trading around 113.30 during the Asian hours on Friday. The precious metal retreated from its fresh record high of 121.66, reached on January 29, as profit-taking set in, though prices remained on track for over 60% monthly gains amid elevated economic and geopolitical uncertainty.

Geopolitical risks remained elevated after Iran warned it would “defend itself and respond like never before” following fresh threats from President Trump. Tensions escalated further as the European Union designated Iran’s Islamic Revolutionary Guard Corps a terrorist organization.

Reports also pointed to the US boosting its military presence near Iran, while Tehran announced live-fire military drills in the strategically vital Strait of Hormuz, heightening concerns over regional security.

Silver’s safe-haven rally was fueled by fading confidence in US assets after President Donald Trump downplayed the dollar’s four-year low while escalating tariff threats and criticizing the Federal Reserve (Fed).

US President Donald Trump plans to announce his choice to replace Fed Chair Jerome Powell on Friday morning. Trump said his nominee would do a “good job” and expressed a desire for rate cuts when economic growth shows strength, per Bloomberg.

The Fed, meanwhile, held interest rates steady, citing resilient economic activity and early signs of labor-market stabilization, while noting inflation remains elevated and the outlook uncertain. Markets expect the central bank to deliver its next rate cut in June.