Silver Price Rises to $34.50 on Safe-Haven Demand Amid US Economic Weakness

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XAG/USD Holds Near $34.50 as Safe-Haven Demand Grows

Silver (XAG/USD) is trading near $34.50 per troy ounce in early Thursday trading, recovering from two consecutive days of losses. This rebound is attributed to renewed safe-haven buying, as market participants grow increasingly cautious amid global economic and political uncertainty.

Soft US Data Increases Likelihood of Fed Rate Cuts

Recent US economic releases have fueled expectations of Federal Reserve rate cuts in 2025, which supports non-yielding assets like Silver.

• The ISM Services PMI for May dropped to 49.9, below both April’s 51.6 and the forecast of 52.0, signaling contraction in the services sector.
• The ADP employment report showed a gain of just 37,000 private-sector jobs, compared to April’s 60,000 (revised from 62,000) and far short of the market expectation of 115,000.

These disappointing figures strengthen the case for monetary easing by the Fed, which tends to benefit precious metals.

🔗 Learn more: How Fed Policy Affects Precious Metals

Trump Pushes Fed to Cut Rates

Adding a political dimension to the market reaction, former President Donald Trump publicly urged Fed Chair Jerome Powell to lower interest rates following the ADP report. While Powell has remained non-committal, the pressure adds to speculative bets on 2025 rate cuts, further boosting Silver.

📊 For more context, visit: US Economic Indicators Dashboard

Outlook: XAG/USD Remains Supported

Given ongoing global uncertainty and dovish Fed expectations, Silver may continue to attract safe-haven flows. If upcoming data remains soft, XAG/USD could aim for new highs above current levels.

Conclusion

Silver’s rise to $34.50 is underpinned by a combination of economic uncertainty, weaker US data, and political pressure for rate cuts. As long as risk-off sentiment prevails and the Fed remains open to easing, XAG/USD is likely to remain supported.