Silver Price Forecast: XAG/USD trades above $39.00, reaches fresh 14-year highs
- Silver price has marked $39.39, the highest since September 2011, on Wednesday.
- The price of Silver inches lower as recent trade developments have dampened safe-haven demand.
- Trump announced a trade agreement with Japan that imposes a 15% tariff on Japanese exports to the US.
Silver price (XAG/USD) edges lower after reaching $39.39, the highest since September 2011, and currently trading around $39.20 per troy ounce during the Asian session on Wednesday. The price of Silver comes under pressure due to dampened safe-haven demand, driven by a wave of trade deals.
United States (US) President Donald Trump announced a trade deal with Japan that includes a 15% tariff on Japanese exports to the US. As part of the agreement, Japan will invest $550 billion in the US and open its markets to key American products.
President Trump said during a meeting with the Philippines President Bongbong Marcos on Tuesday that “I think we will get a trade deal; we’re close to a trade deal.” I don’t mind if the Philippines gets along with China, he added.
On Tuesday, US Treasury Secretary Scott Bessent announced that American and Chinese officials will meet in Stockholm next week for a third round of high-level talks. The meeting follows his recent in-person discussions with Chinese Vice Premier He Lifeng in Geneva and London, as both sides work toward extending the current pause in trade tensions beyond mid-August.
The European Union (EU) continues to seek a trade pact with the United States. However, the bloc is preparing retaliatory measures as Trump’s hardline stance heightens the risk of a no-deal outcome. The European Central Bank (ECB) is expected to hold interest rates steady at 2.0% on Thursday after a series of rate cuts.
