Silver Price Forecast: XAG/USD attracts some buyers to above $37.00 on softer US Dollar

• Silver price gains traction to near $37.20 in Thursday’s Asian session. 

• Combined safe-haven flows and industrial demand support the Silver price. 

• US GDP grew at an annual rate of 3.0% in Q2, stronger than expected. 

The Silver price (XAG/USD) trades in positive territory around  $37.20 during the Asian trading hours on Thursday, bolstered by a weaker US Dollar (USD). Investors brace for further development surrounding US President Donald Trump’s tariff policy on major trade partners. 

Trump late Wednesday announced a new trade deal with South Korea, stating that the United States (US) would charge a 15% tariff on imports from South Korea. The agreement includes a $350 billion commitment from South Korea toward US-owned and controlled investments. Also, Investors continue to assess the 25% duties on imports from India, along with an unspecified “penalty.” Any signs of tariff uncertainty or renewed trade tensions could boost demand for safe-haven assets such as Silver.

The uptick of the white metal is also supported by rising industrial demand for solar energy, electronics, and green technology, with the metal principally utilized in photovoltaic (PV) solar cells as a vital material for the electrical connections that enable electricity to flow from the solar panel.

On the other hand, the stronger-than-expected US economic data could lift the Greenback and weigh on the USD-denominated commodity price. The US Gross Domestic Product (GDP) expanded at an annual rate of 3.0% for the April through June period, the US Bureau of Economic Analysis showed on Wednesday. This figure followed the 0.5% contraction in the first quarter and came in stronger than the expectation of 2.4%.