Silver Price Holds Near $36.00 as Ceasefire and Fed Dovish Hints Weigh on Safe-Haven Demand

Silver Price Forecast: XAG/USD Rebounds Near $36.00 as Ceasefire Softens Risk Aversion

June 24, 2025 – Asian Trading Session
The Silver price (XAG/USD) is hovering around $36.10 during Tuesday’s early Asian session after staging a rebound from intraday lows. The recovery is limited as safe-haven demand weakens, following positive geopolitical developments and dovish signals from the Federal Reserve.

Israel-Iran Ceasefire Dampens Safe-Haven Demand

US President Donald Trump announced on Monday a “complete and total ceasefire” between Israel and Iran, aimed at ending hostilities in the region. Trump stated that Iran would start the ceasefire immediately, with Israel joining within 12 hours, marking a notable step toward regional de-escalation.

Earlier, Iran had fired missiles at the Al Udeid Air Base in Qatar, but Qatari officials confirmed the attack was intercepted, and the base had been evacuated in advance, avoiding casualties. The ceasefire news has led to a cooling in global risk aversion, reducing the demand for safe-haven assets like silver and gold.

Fed’s Dovish Stance Adds to Metal Market Headwinds

Adding to the pressure on precious metals, Federal Reserve Vice Chair for Supervision Michelle Bowman suggested on Monday that the central bank may favor an interest rate cut in July, citing risks to the labor market and a clearer path for inflation moving toward 2%.

This dovish commentary weighs on the US Dollar, usually supportive for silver prices, but in this case, is offset by fading geopolitical concerns.

“The balance between monetary easing and easing war fears has created a tug-of-war for precious metals,” said one analyst.

What's Next for Silver?

Market participants will closely watch:

• Fed Chair Jerome Powell’s semiannual testimony
• June US Consumer Confidence data

These events may further shape rate expectations and influence silver's short-term direction.

Related Reads on Tredu.com:

• Gold Prices Slump on Middle East De-escalation
• How Rate Cuts Impact Precious Metal Markets
• Israel-Iran Ceasefire Timeline and Market Reaction