Silver Price Forecast: XAG/USD remains above $30.00 ahead of US Nonfarm Payrolls

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• Silver price remains stronger as receives support from safe-haven demand.

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• The precious metals like Silver gain support amid uncertainty surrounding inflation and potential Trump tariffs.

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• Traders closely monitor the US Nonfarm Payrolls report for further insights into the Federal Reserve's policy direction.

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Silver price (XAG/USD) continues its rally after registering little losses in the previous session, trading around $30.20 per troy ounce during the Asian hours on Friday. Traders are now focused on US labor market data including Nonfarm Payrolls (NFP), for additional insights into the Federal Reserve's policy direction.

The precious Silver, often considered a safe-haven asset, gains support amid uncertainty surrounding inflation and potential tariffs under President-elect Trump’s administration, as highlighted by the US Federal Reserve (Fed).

However, the upside of the non-yielding metal could be restrained as long-term US bond yields continue climbing on heavy supply. The 10-year stands at 4.68%, while the 30-year stands at 4.92% at the time of writing. This could be attributed to hawkish Federal Open Market Committee (FOMC) Minutes from the December meeting.

The latest FOMC Meeting Minutes showed that Fed policymakers expressed concern about inflation and the impact that President-elect Donald Trump’s policies could have. Fed officials indicated they would be moving more slowly on rate reductions because of the uncertainty. Fed officials penciled the expected cuts in 2025 to two from four in the previous estimate at September’s meeting.

Heightened geopolitical tensions have intensified market volatility, driving investors toward safe-haven assets like Silver. On Thursday, four people were killed in shelling incidents in Ukraine, with regional officials attributing one attack to Russia's military and another to Ukrainian forces. In the Russian-controlled Zaporizhzhia region, two additional fatalities occurred when the town of Kamyanka-Dniprovska came under Ukrainian fire, according to Russia-appointed governor Yevgeny Balitsky, as reported by Reuters.