Silver Price Forecast: XAG/USD remains subdued near $39.00 amid dampened safe-haven demand

• Silver price continues its losing streak amid easing trade tensions, dampening demand for safe-haven assets.

• The US and EU are reportedly close to finalizing a deal that would impose 15% tariffs on EU goods.

• US Initial Jobless Claims fell for the sixth consecutive week, boosting expectations that Fed will keep rates unchanged next week.

Silver price (XAG/USD) remains subdued for the third consecutive day, trading around $39.00 per troy ounce during the Asian hours on Friday. The price for the Silver faces challenges amid easing trade tensions and rising risk appetite.

Investors continue to monitor progress in tariff negotiations, with the US and EU reportedly nearing an agreement that would impose 15% tariffs on EU goods imported into the US. Additionally, US President Donald Trump announced on Tuesday a major tariff deal with Japan, which includes a 15% tariff on Japanese exports.

US Initial Jobless Claims fell to 217,000 last week, down from 227,000 and 221,000 in the prior weeks. This marks the sixth consecutive weekly decline, the longest streak since 2022, underscoring the resilience of the labor market. The data supports expectations that the Federal Reserve (Fed) will keep interest rates unchanged at next week’s meeting. Markets are now pricing in fewer than two rate cuts for the year, with the first fully expected in October.

Meanwhile, investors also noted renewed tension between US President Donald Trump and Fed Chair Jerome Powell, as they clashed over the central bank's renovation costs. Trump repeated his call for lower rates but said the renovation issues weren’t enough to justify firing Powell.

Moreover, US Treasury Secretary Scott Bessent said on Wednesday that a nominee for the next Federal Reserve Chair is likely to be announced in December or January. Bessent emphasized that there is “no rush” to select a successor to current Fed Chair Jerome Powell.