Silver Price Forecast: XAG/USD rises to near $31.00 on recent Trump remarks


  • Silver price advanced as President Trump expressed his desire for the US Federal Reserve (Fed) to lower interest rates without delay.
  • Trump stated that he "would rather not have to use tariffs on China" and is hopeful about reaching a deal.
  • The demand for the precious Silver increases due to weaker US Dollar and Treasury yields.

Silver price (XAG/USD) recovers its recent losses, trading around $30.80 per troy ounce during the Asian trading session on Friday. The demand for non-interest-bearing Silver rises following comments made by US President Donald Trump late Thursday.

Trump expressed his desire for the US Federal Reserve (Fed) to lower interest rates without delay. “With Oil prices falling, I’ll demand that interest rates be cut immediately, and they should be reduced worldwide,” he said during the World Economic Forum in Davos, Switzerland.

Additionally, industrial demand for Silver may have strengthened following US President Donald Trump's comments about his preference to avoid tariffs on China, the world's largest consumer of metals and a manufacturing hub. Trump expressed optimism about reaching a deal with China after a conversation with President Xi Jinping on Thursday, suggesting potential progress in US-China trade negotiations.

Traders are likely to continue turning to safe-haven assets like Silver, remaining cautious amid uncertainty surrounding the impact of Trump’s proposed tariffs and immigration policies. On Tuesday, Trump also announced plans to impose a 25% tariff on imports from Canada and Mexico, along with duties on the European Union.

The US Dollar Index (DXY), which measures the US Dollar's performance against six major currencies, continues to decline as US Treasury yields depreciate amid improved risk sentiment. The DXY has fallen below 107.00, with the 2-year and 10-year US Treasury yields standing at 4.26% and 4.63%, respectively, at the time of writing. This shift could be contributing to the uptrend in non-yielding metals like Silver, which are seeing increased appeal.

Silver FAQs

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review

Recommended content


Recommended content

Editors’ Picks

AUD/USD stays firm near 0.6300 amid modest risk appetite

AUD/USD stays firm near 0.6300 amid modest risk appetite

AUD/USD is posting small gains near 0.6300 in early Asian trades on Monday, opening the week on the front foot. Risk sentiment remains in a sweeter spot following the weekend's news of lower US tariffs on Chinese electronic supply chain. Tariffs talks will remain on the radar. 

AUD/USD News
USD/JPY rises above 143.50 at the weekly opening

USD/JPY rises above 143.50 at the weekly opening

USD/JPY is trading well bid above 143.50 amid a positive start to the Holy Friday week. The US Dollar holds the rebound from multi-year troughs, digesting Trump's tariff news from the weekend. The Fed-BoJ policy divergence expectations will keep the Japanese Yen supported, limiting the pair's upside. 

USD/JPY News
Gold retreats from record highs of $3,245 as US Dollar finds its feet

Gold retreats from record highs of $3,245 as US Dollar finds its feet

Gold is rereating from record highs of $3,245 early Monday, extending Friday's late pullback. Reducded demand for safe-havens and a broad US Dollar rebound undermine the yellow metal amid the news of not-so-steep US tariffs on China's semiconductors and electronics. 

Gold News
Week ahead: ECB set to cut, BoC might pause as Trump U-turns on tariffs

Week ahead: ECB set to cut, BoC might pause as Trump U-turns on tariffs

ECB is expected to trim rates, but the BoC might pause this time. CPI data also in the spotlight; due in UK, Canada, New Zealand and Japan. Retail sales the main release in the United States. China GDP eyed as Beijing not spared by Trump.

Read more
Is a recession looming?

Is a recession looming?

Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025