Silver Price Forecast: XAG/USD Falls Towards $32.00 on Potential Russia-Ukraine Ceasefire

Silver Price Declines as Russia-Ukraine Ceasefire Talks Weigh on Safe-Haven Demand

Silver prices have declined as the prospect of a ceasefire between Russia and Ukraine reduces the appeal of safe-haven assets like silver. US President Donald Trump announced on Monday that, following a conversation with Russian President Vladimir Putin, immediate ceasefire negotiations between Russia and Ukraine will begin, potentially without US involvement. This news has led to a decrease in demand for precious metals, which typically benefit from geopolitical uncertainty and conflict.

Despite the negative sentiment surrounding silver, the metal’s losses were somewhat mitigated by Moody's downgrade of the US sovereign credit rating from "Aaa" to "Aa1". The downgrade, which reflects concerns over rising US debt levels and increased interest expenses, has raised doubts about the stability of the US economy. This development has provided some support to silver prices, which traditionally act as a hedge against economic instability.

Silver (XAG/USD) has now extended its decline for the third consecutive session, trading at approximately $32.20 per troy ounce during Tuesday’s Asian session. Market participants are closely monitoring the evolving geopolitical situation, as well as US economic indicators, which may influence future movements in precious metal prices.