Silver Price Forecast: XAG/USD edges higher to near $37.00 due to safe-haven demand

• Silver price gains ground amid increased safe-haven demand, driven by the renewed trade concerns.

• Trump’s new letters detail individual tariff rates ranging from 20% to 50% on eight countries, taking effect starting August 1.

• The demand for the dollar-denominated Silver rises due to a weaker US Dollar.

Silver price (XAG/USD) halts its three-day losing streak, trading around $36.50 per troy ounce during the Asian hours on Thursday. The safe-haven Silver gains ground due to the renewed trade concerns, driven by a new wave of tariff demand letters from US President Donald Trump on Wednesday

Traders adopt caution amid sparking concerns about a renewed global trade war as Trump’s letters outline individual tariff rates ranging from 20% to 50% for eight countries starting August 1. Additionally, Trump has also announced the new 50% tariff on US copper imports, which will take effect on August 1, per Reuters.

The dollar-denominated Silver is also supported by a weaker US Dollar (USD), which makes the metal more affordable for buyers using foreign currencies. The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, extends its losses for the second successive session and is trading at around 97.40 at the time of writing.

The Federal Open Market Committee (FOMC) Minutes from the June 17–18 meeting, released on Wednesday, indicated that policymakers largely maintained a wait-and-see stance regarding future interest rate decisions. The minutes also indicated that Fed officials were divided on the timing and extent of potential interest rate cuts. Most policymakers expected some easing later this year, views ranged from backing a reduction as early as July to favoring no cuts at all by year-end.