Silver Price Forecast: XAG/USD edges higher above $36.00 on softer US Dollar, rising demand
Silver price drifts higher to near $36.35 in Thursday’s early Asian session.
Trump's attacks threaten Fed credibility, weighing on the US Dollar.
Rising demand for industrial uses supports the Silver price.
The Silver price (XAG/USD) attracts some buyers to around $36.35 during the early European session on Thursday, bolstered by a weaker US Dollar (USD). Traders will take more cues from the final US Q1 GDP Growth Rate and Fedspeak later on Thursday.
The Greenback faces some selling pressure due to concerns about the future independence of the US Federal Reserve (Fed). This, in turn, provides some support to the USD-denominated commodity price, as a weaker USD makes Silver cheaper for foreign buyers. US President Donald Trump said that he is selecting Fed Chair Jerome Powell's replacement by September or October.
Furthermore, rising demand for industrial uses might contribute to silver’s upside. According to the Silver Institute, global silver demand is estimated to reach a new record in 2025, led by industrial use in photovoltaics and electronics, as well as a recovery in jewelry and silverware.
Markets have priced in the possibility of a rate cut at the Fed's next meeting in July to 25%, up from just 12% a week ago, and priced in 64 basis points (bps) of reductions by year-end, up from around 46 bps last week, according to Reuters. Traders will take more cues from the US GDP data later on Thursday. Any surprise upside in economic data could lift the US Dollar and undermine the Silver price in the near term.
* 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.
