Silver Price Forecast: XAG/USD falls to near $72.00 amid fading safe-haven demand

• Silver declines as safe-haven demand weakens amid growing optimism over Middle East peace.

• Trump reiterated that Iran’s military capabilities were significantly weakened, signaling an end to the conflict.

• Non-yielding Silver rises for a second week as markets reassess Fed outlook amid geopolitical, growth, and inflation concerns.

Silver price (XAG/USD) continues to lose ground after registering tiny losses in the previous day, trading around $72.90 during the Asian hours on Thursday. The safe-haven demand for the precious metal fades amid rising optimism over Middle East peace.

US President Donald Trump stated that Iran’s military capabilities have been significantly weakened, noting that its missile and drone capacity has been curtailed. Trump added that the US no longer relies on Middle Eastern oil and emphasized that Iran’s naval and air forces have been severely diminished, with leadership losses further reducing its operational strength, while signaling that the US intends to conclude the conflict swiftly.

Dollar-denominated Silver faces headwinds as the US Dollar (USD) rebounds after two days of losses, making the metal more expensive for foreign buyers and weighing on demand. However, the Greenback’s upside may remain limited as easing Middle East tensions reduce safe-haven demand.

However, non-yielding Silver is on the track moving upwards for a second consecutive week, gaining more than 7%, as markets reassess the US Federal Reserve’s (Fed) policy outlook amid shifting geopolitical risks, growth concerns, and persistent inflation pressures.

The Fed kept interest rates unchanged at 3.50%–3.75% following its March 17–18, 2026 meeting. Nevertheless, the median dot plot still points to one 25-basis-point rate cut later in 2026, although some policymakers now anticipate no cuts this year.

Meanwhile, US Treasury yields are recovering, with both 2-year and 10-year notes extending gains after strong economic data reinforced expectations that rates could remain steady for longer. St. Louis Fed President Alberto Musalem noted that current monetary policy is appropriately positioned and likely to remain unchanged for some time.