Silver Price Forecast: XAG/USD extends the rally to above $38.00 amid renewed trade concerns
- Silver price attracts some buyers to near $38.05 in Thursday’s early European session.
- Tariff uncertainty and renewed trade concerns support the Silver price, a safe-haven asset.
- Investors await the US weekly Initial Jobless Claims data and Fedspeak later on Thursday.
The Silver price (XAG/USD) extends its upside around $38.05 during the early European trading hours on Thursday. The white metal trades in positive territory for the fifth consecutive day amid a softer US Dollar (USD). Investors will take more cues from the speeches of Federal Reserve (Fed) officials later on Thursday, including Raphael Bostic and Alberto Musalem.
US President Donald Trump said on Wednesday that he could impose further tariffs on China similar to the 25% levies announced earlier on India over its purchases of Russian oil, depending on what happens. Additionally, Trump noted that he could announce an additional 15% tariff on all Japanese imports. Tariff uncertainty and renewed trade tensions boost safe-haven assets like the Silver price.
Traders have been pricing in the chance of more interest rate cuts than previously expected by the Fed this year. The bets were lifted by the weaker-than-expected US Nonfarm Payrolls (NFP) report released last Friday. Lower interest rates could reduce the opportunity cost of holding Silver, supporting the non-yielding white metal.
The US weekly Initial Jobless Claims will be in the spotlight later on Thursday. The figure is expected to rise to 221,000 for the week ended August 2. In case of a stronger-than-expected outcome, this could support the Greenback and weigh on the USD-denominated commodity price.
