Silver price forecast: XAG/USD increases to almost USD 32.00 among growing tensions in the Middle East

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  • Silver profit prices due to unthreatening demand after the novel Trump tariffs.
  • The Israeli Prime Minister Netanyahu warned to end the arms suspension if Hamas did not release hostages by Saturday noon.
  • Non -compliant silver can fight, like Powell Fed signaled that there is no urgent need to lower interest rates.

The silver price (XAG/USD) regains the last losses, floating around USD 31.90 per ounce of Troy during Wednesday’s Asian session. The unthreatening demand for precious metal increases in connection with the growing aversion to risk after novel US tariffs and escalation of geopolitical tensions in the Middle East.

On Monday, US President Donald Trump implemented a flat 25% tariff for the import of steel and aluminum, eliminating all layoffs and annulment of previous trade agreements with key US allies. This movement aims to strengthen the fighting national industries, but increases the risk of a broader trade conflict.

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Geopolitical tensions in the Middle East can additionally support the silver price. Israeli Prime Minister Benjamin Netanyahu warned at the end of Tuesday that the suspension of the weapon would end and Israel would resume “intensive fights” in gas if Hamas did not release hostages until Saturday at noon, according to the BBC. Earlier, President Trump called Israel to break the arms suspension if the hostages were not returned to the weekend.

However, the demand for interest -free silver can face the wind, because higher interest rates in the USA may persist. In his six -month report to Congress, the chairman of the Federal Reserve Jerome Powell stated that officials “do not have to hurry” to lower the rates, citing a sturdy labor market and solid economic growth. Powell also noted that President Trump’s tariff policy could have additional pressure on the raise in prices, which makes the Fed more challenging to relieve monetary policy.

Investors are now waiting for consumer price inflation (CPI) on Wednesday, which can shape the expectations of the FED monetary policy. It is expected that the inflation of the CPI header will remain stable after 2.9% year -on -year, while the basic inflation of CPI is to reduce to 3.1% slightly compared to the previous 3.2%.

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