Silver Price Forecast: XAG/USD rises above $36.30 amid heightened Middle East geopolitical tensions

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • Silver price gains traction to near $36.30 in Thursday’s early Asian session. 

  • Cooler-than-expected CPI boosts Fed rate cut expectations. 

  • Rising geopolitical risks could support the Silver price in the near term. 

The Silver price (XAG/USD) attracts some buyers to around $36.30, snapping the two-day losing streak during the Asian trading hours on Thursday. The weaker US Dollar (USD) and escalating geopolitical tensions in the Middle East provide some support to the white metal. Traders will keep an eye on the US Producer Price Index (PPI) and weekly Initial Jobless Claims, which will be released later on Thursday. 

Softer-than-expected US inflation in May has prompted traders to raise their bets on a Federal Reserve (Fed) rate cut. This, in turn, drags the Greenback lower and lifts the USD-denominated commodity price. The CME FedWatch tool showed the markets have priced in nearly a 68% possibility that the US central bank would cut rates by 25 basis points (bps) by September, compared with 57% before the US CPI data. They now also see a still small but rising chance of an earlier rate cut, putting about an 18% odds of that happening in July versus about 13% earlier on Wednesday.

Reuters reported on Wednesday that the United States (US) is planning a partial evacuation of its Iraqi embassy and will allow military dependents to depart places around the Middle East, citing security risks in the region. Geopolitical risks could underpin the Silver price as investors seek more holdings in safe-haven assets.

On the other hand, White House envoy Steve Witkoff is scheduled to meet Iranian Foreign Minister Abbas Araghchi in Muscat on Sunday and discuss the Iranian response to the recent US proposal, per Axios. Any positive developments surrounding a deal over the nuclear program between the US and Iran might cap the upside for the Silver. 

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Silver Price Forecast: Bulls have the upper hand while above the $35.40 horizontal supportSilver (XAG/USD) attracts some sellers near the $36.55-$36.60 region during the Asian session on Thursday.
Author  FXStreet
Yesterday 02: 58
Silver (XAG/USD) attracts some sellers near the $36.55-$36.60 region during the Asian session on Thursday.
placeholder
Silver Price Forecast: XAG/USD edges lower to near $36.00 on modest US Dollar strengthThe Silver price (XAG/USD) edges lower to around $36.10 during the Asian trading hours on Wednesday, pressured by a modest rebound in the US Dollar (USD).
Author  FXStreet
Jul 02, Wed
The Silver price (XAG/USD) edges lower to around $36.10 during the Asian trading hours on Wednesday, pressured by a modest rebound in the US Dollar (USD).
placeholder
Silver spikes up to $36.50 with markets turning cautiousSilver (XAG/USD) is extending its rebound from Monday’s lows at $35.40 to intra-day highs at $36.50.
Author  FXStreet
Jul 01, Tue
Silver (XAG/USD) is extending its rebound from Monday’s lows at $35.40 to intra-day highs at $36.50.
placeholder
NZD/USD trades below 0.6100 following China's Caixin Manufacturing PMINZD/USD edges lower after registering more than 0.50% losses in the previous session, trading around 0.6090 during the Asian hours on Tuesday.
Author  FXStreet
Jul 01, Tue
NZD/USD edges lower after registering more than 0.50% losses in the previous session, trading around 0.6090 during the Asian hours on Tuesday.
placeholder
Silver Price Forecast: XAG/USD struggles below $36.00 mark; bears seem non-committedThe white metal currently trades around the $35.85 region, down 0.70% for the day.
Author  FXStreet
Jul 01, Tue
The white metal currently trades around the $35.85 region, down 0.70% for the day.
Real-time Quote