Silver Price Forecast: XAG/USD trades around $36.00 after recovering recent losses
Silver price faced challenges amid decreased safe-haven demand following the ceasefire agreement in the Middle East.
Trump announced a "complete and total" ceasefire between Israel and Iran.
Fed Governor Michelle Bowman could support an interest rate cut in July.
Silver price (XAG/USD) pared its intraday losses, trading around $36.10 per troy ounce during the Asian hours on Tuesday. Prices of precious metals, including Silver, depreciated as a ceasefire agreement between Israel and Iran dampened the safe-haven demand.
President Trump said on Monday that a "complete and total" ceasefire between Israel and Iran will go into effect to end the conflict between the two nations. He also added that Iran will begin the truce immediately, followed by Israel after 12 hours.
Trump's comments came shortly after Iran fired missiles at the Al Udeid Air Base in Qatar on Monday. Qatar officials said that the missile barrage was intercepted and that the base had been evacuated in advance.
On Monday, Federal Reserve’s (Fed) Vice Chair for Supervision Michelle Bowman could support a rate cut in July as risks to the job market may be on the rise. Bowman also highlighted that inflation appears to be on a sustained path back to 2%, and she is less concerned that tariffs will cause an inflation problem. The non-interest-bearing Silver may attract buyers as investors look for better returns on their investments.
Moreover, Fed Governor Christopher Waller highlighted on Friday that the US central bank could start easing monetary policy as soon as next month. However, Fed Chair Jerome Powell warned that ongoing policy uncertainty will keep the Fed in a rate-hold stance, and any rate cuts will be contingent on further improvement in labor and inflation data. Investors will likely observe Fed Chair Jerome Powell, who is scheduled to testify before the US Congress on Tuesday and Wednesday, in search of clues about the future direction of interest rates.
* 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.
