- Silver price remains steady as the US Dollar weakens amid growing concerns over a potential US economic slowdown.
- Silver may encounter resistance as the Federal Reserve holds its outlook for two rate cuts later this year.
- Improved risk sentiment and the White House’s revised tariff strategy could exert downward pressure on Silver prices.
Silver price (XAG/USD) edges higher on Monday, trading around $33.10 per troy ounce during Asian hours after three consecutive sessions of losses. The rebound is driven by a weaker US Dollar as concerns over a potential US economic slowdown grow due to trade policies under President Donald Trump.
The US Dollar Index, which measures the USD against six major currencies, halts its three-day winning streak and trades lower near 104.10. Meanwhile, market participants await the preliminary reading of the US S&P Global Manufacturing PMI for March.
However, Silver may face headwinds as the Federal Reserve (Fed) maintains its outlook for two rate cuts later this year, following its decision to keep the federal funds rate at 4.25%–4.5% during its March meeting. The Fed’s stance, aligning with forecasts of slower GDP growth and higher unemployment, helps counterbalance inflation concerns, which may be exacerbated by aggressive tariffs imposed by President Trump.
Additionally, Silver prices could come under pressure from safe-haven flows amid improved risk sentiment as the White House revises its tariff strategy ahead of the April 2 implementation. According to the Wall Street Journal, the administration is expected to drop some industry-specific tariffs while imposing reciprocal tariffs on countries with strong trade ties to the US.
Additionally, geopolitical tensions ease following talks between Ukrainian and US officials in Riyadh on Sunday. Efforts to broker a ceasefire continue, with President Trump advocating for an end to the three-year war. Ukrainian Defense Minister Rustem Umerov discussed measures to safeguard energy and critical infrastructure, while US and Russian delegates are set for separate talks on Monday, according to Bloomberg.
