Silver Price Holds Near $36.00 as Weak US Dollar Lifts XAG/USD

Silver Price Holds Near $36.00 as Weak US Dollar Lifts XAG/USD

The Silver price (XAG/USD) edged higher during the Asian session on Wednesday, trading near $35.95, as the US Dollar weakened amid disappointing economic data and growing speculation ahead of Fed Chair Jerome Powell’s testimony.

Weaker US Dollar Supports XAG/USD

The drop in the US Consumer Confidence Index, released Tuesday by the Conference Board, reflects growing concerns over trade uncertainties under President Trump’s administration. The index fell to 93 in June, missing expectations and reinforcing a bearish outlook for the USD. This decline helped support dollar-denominated Silver, giving bulls modest short-term momentum.

Easing Geopolitical Tensions Limit Safe-Haven Demand

Despite support from the USD weakness, Silver's safe-haven appeal may be fading slightly. The recent Iran-Israel ceasefire appears to be holding, with both sides publicly committing to adherence. A lasting de-escalation could lead to a risk-on shift in market sentiment, often resulting in reduced demand for precious metals like Silver.

“If the ceasefire holds, we could see safe-haven flows move out of Silver and back into equities,” said a market analyst at Tredu Research.

What to Watch Next

Investors will closely monitor Fed Chair Jerome Powell’s testimony later today, looking for clarity on the central bank’s next policy moves. Further dovish signals could weaken the Dollar further, potentially lending additional support to XAG/USD. However, any confirmation of easing geopolitical risks may cap upside momentum in precious metals.

Related Reading on Tredu.com:

• Gold vs Silver: Which Safe-Haven Will Lead in 2025?
• How Geopolitics Move Silver Prices
• US Dollar Outlook After Powell's Testimony