Silver Price Forecast: XAG/USD posts modest gains near $36.00 on weaker US Dollar
Silver price trades with mild gains around $35.95 in Wednesday’s Asian session.
The weaker US Dollar provides some support to the USD-denominated Silver.
The risk-on mood due to easing Middle East tension might cap the XAG/USD’s upside.
The Silver price (XAG/USD) posts modest gains near $35.95 during the Asian session on Wednesday. The weaker US Dollar (USD) provides some support to the USD-denominated commodity price. Traders brace for Federal Reserve’s (Fed) Chair Jerome Powell testifies later on Wednesday.
US consumer confidence fell again in June amid uncertainty about US President Donald Trump's trade policies. Data released by the Conference Board on Tuesday showed that the US Consumer Confidence Index dropped to 93 in June, below the market consensus. The downbeat US economic data drag the US Dollar lower and benefit the Silver price.
On the other hand, the truce between Iran and Israel appeared to hold, with both sides saying they would honor the ceasefire if the other side did the same. Investors expect a truce between both countries will reduce the fears of wider war, which dampens the alternative safe-haven assets like Silver.
Investors will closely monitor the developments surrounding the Israel-Iran conflict. Israeli Prime Minister Benjamin Netanyahu said the country would strike again if Iran rebuilds its nuclear project. Any signs of escalation could boost the white metal in the near term.
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