Silver Price Forecast XAG/USD depreciates toward $30.50 due to risk-on sentiment

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Silver prices face challenges due to a reduced demand for safe-haven assets following Trump’s election victory.

The demand for riskier assets improves as markets assess the potential impacts of the proposed Trump policies.

The dollar-denominated Silver struggles due to a stronger US Dollar and rising Treasury yields.

Silver prices (XAG/USD) experiences a third consecutive day of declines, trading around $30.60 per troy ounce during the Asian session on Tuesday. The precious metals sector, including Silver, is facing pressure due to a reduced demand for safe-haven assets.


Traders are increasingly shifting toward riskier assets as markets assess the potential impacts of US President-Elect Trump’s potential fiscal policies and monetary strategies. The possibility of tariffs being implemented early in Trump’s presidency could lead to inflation, which in turn may cause the Federal Reserve (Fed) to delay its expected easing measures in the coming year.


As a result, the dollar-denominated Silver is also struggling amid a stronger Greenback and rising US Treasury yields. The US Dollar Index (DXY), which tracks the value of the US Dollar against six major currencies, is hovering near a four-month high at 105.70. Meanwhile, the yields on 2-year and 10-year US Treasury bonds are at 4.28% and 4.32%, respectively, at the time of writing.


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