- The price of Silver remains under pressure near $30.35 in the early stages of the European session on Friday.
- Trump’s trades are likely to support the Dollar and undermine the USD-denominated price of Silver.
- Global silver demand in 2024 could help limit XAG/USD losses.
The price of Silver (XAG/USD) is trading in negative territory around $30.35 on Friday during the early stages of the European session. The white metal remains vulnerable amid a stronger US Dollar (USD). Traders look to the release of the US October retail sales report on Friday for fresh impetus. The Fed’s statements will be closely watched as they could offer some clues about the outlook for US interest rates.
Donald Trump’s victory in last week’s US presidential election sparked expectations of possible inflationary tariffs and other measures by his next administration, boosting the dollar. Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD against a basket of six currencies, is currently trading near 106.80 after reaching a new yearly high near 107.05 in the previous session. The 10-year US Treasury note hit the highest level since early July at 4.48%. Renewed demand for USD could undermine USD-denominated Silver as it makes the white metal more expensive in other currencies, reducing demand.
China’s National People’s Congress (NPC) meeting last week failed to deliver the immediate fiscal stimulus investors had hoped for. Concerns about weak demand could weigh on the price of silver, as China is the world’s largest importer of silver.
On the other hand, record industrial demand for silver could support the white metal in the short term. According to the Silver Institute and the consulting firm Metals Focus, demand for silver in industrial applications is expected to increase 7% year-on-year in 2024, reaching 700 million ounces (Moz). Additionally, analysts expect the global silver market to show a physical deficit of around 182 million ounces in 2024, marking the fourth consecutive year of shortages.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
