- Silver prices face downward pressure as the US Dollar strengthens, buoyed by a rebound in the 2-year US Treasury yield.
- Silver may find support from persistent safe-haven demand driven by growing economic uncertainty.
- White House economic advisor Kevin Hassett confirmed that President Trump is exploring legal options to remove Fed Chair Jerome Powell.
Silver price (XAG/USD) dips slightly during Tuesday’s Asian session, trading around $32.60 per troy ounce, after posting gains in the previous session. The grey metal is under pressure as the US Dollar (USD) regains strength. The US Dollar Index (DXY), which measures the Greenback against six major currencies, hovers near 98.30, supported by a rebound in the 2-year US Treasury yield, now at 3.77%.
However, Silver could regain momentum as safe-haven demand persists amid ongoing economic uncertainty. The DXY recently fell to a three-year low after US President Donald Trump intensified pressure on the Federal Reserve (Fed), urging aggressive rate cuts and reportedly exploring the dismissal of Fed Chair Jerome Powell.
White House economic advisor Kevin Hassett confirmed that Trump is looking into the legal grounds for removing Powell. In a Truth Social post, Trump also warned that the economy could falter unless the Fed acts quickly to lower rates.
This rising political uncertainty has boosted demand for safe-haven assets like Silver. Investor sentiment is also shaken by the continued stalemate in global trade talks, with China pushing back against Trump’s tariff tactics. Additionally, Trump’s proposed probe into critical mineral imports has stoked fears of slower growth and higher inflation, factors that may continue to support Silver prices.
