Silver Price Forecast: XAG/USD Drops to $36.50 Amid Fed Uncertainty and Iran Tensions

Silver Price Forecast: XAG/USD Edges Down to $36.50 Despite Heightened Risk Sentiment

Silver (XAG/USD) is under mild pressure in Friday’s Asian session, slipping to around $36.50 per troy ounce after posting modest gains in the previous two sessions. The decline comes despite rising geopolitical and monetary concerns, suggesting markets may be consolidating gains amid headline-driven volatility.

Key Market Drivers Impacting Silver:

• Fed Independence in Doubt:
  US President Donald Trump continues to criticize Federal Reserve Chair Jerome Powell, labeling him “terrible” during a speech at the NATO summit in The Hague. Trump indicated he may name Powell's successor as early as September or October, increasing concerns that central bank independence could be compromised.
• Iran Rejects Nuclear Talks:
  Adding to geopolitical tension, Iranian Foreign Minister Abbas Araghchi firmly denied any plans to resume nuclear negotiations with the US. “No agreement or arrangement has been made... nor any discussion has been done on this point,” said Araghchi, as reported by CNN.

These developments have introduced risk-off sentiment across global markets, yet silver prices are trading lower, possibly due to profit-taking after a recent rally or short-term strength in the US Dollar.

XAG/USD Technical Outlook:

• Immediate support: $36.30 / $36.00
• Resistance zone: $36.85 / $37.00
• Trend bias: Still bullish, supported by recent higher highs and higher lows

While technical momentum remains favorable, silver appears to be pausing ahead of potentially volatile US PCE inflation data and broader risk catalysts.

Macro Risks to Watch:

• Fed policy direction and Trump’s potential announcement
• US-Iran geopolitical tension escalation
• US economic data (especially PCE Index)
• Central bank credibility narratives across G7 economies

For more updates on silver price trends and technical setups, visit the Precious Metals section on Tredu.com.