- The price of silver faced challenges amid the decrease in the demand for safe refuge after the high fire agreement in the Middle East.
- Trump announced a high “complete and total” fire between Israel and Iran.
- The Vice President of Supervision of the Fed, Governor Michelle Bowman, could support an interest rate cut in July.
The price of silver (xag/usd) reduced its intra -losses, quoting around 36.10 per Troy ounce during the Asian hours on Tuesday. The prices of precious metals, including silver, depreciated as a hostilities cessation agreement between Israel and Iran decreased demand as a safe refuge.
President Trump said Monday that a “complete and total” hostilities “between Israel and Iran will enter into force to put an end to the conflict between the two nations. He also added that Iran will begin immediately, followed by Israel after 12 hours.
Trump’s comments arrived shortly after Iran shoot missiles against the Udeid Air Base in Qatar on Monday. Qatar officials said that the brainstorm was intercepted and that the base had been evacuated in advance.
On Monday, the Vice President of Supervision of the Federal Reserve (FED), Michelle Bowman, could support a rate cut in July, since the risks to the labor market could be increasing. Bowman also stressed that inflation seems to be on a sustained road back to 2%, and is less concerned that tariffs cause an inflationary problem. Silver, which does not earn interest, could attract buyers as investors seek better returns in their investments.
In addition, the governor of the Fed, Christopher Waller, stressed on Friday that the US Central Bank could begin to make monetary policy moreland as soon as next month. However, the president of the Fed, Jerome Powell, warned that continuous political uncertainty will keep the Fed in a position of keeping the rates, and any rate cut will depend on an additional improvement in labor and inflationary data. Investors will probably observe the president of the Fed Jerome Powellwho is scheduled to testify to the US Congress on Tuesday and Wednesday, in search of clues about the future direction of interest rates.
FAQS SILVER
Silver is a highly negotiated precious metal among investors. Historically, it has been used as a value shelter and an exchange means. Although it is less popular than gold, operators can resort to silver to diversify their investment portfolio, for their intrinsic value or as a possible coverage during periods of high inflation. Investors can buy physical silver, in coins or bullion, or negotiate it through vehicles such as the funds quoted in the stock market, which follow their price in international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can cause the price of silver to shoot due to its safe refuge status, although to a lesser extent than that of gold. As an asset without performance, silver tends to climb with lower interest rates. Its movements also depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (XAG/USD). A strong dollar tends to maintain the price of silver at bay, while a weaker dollar probably drives rising prices. Other factors such as investment demand, mining – silver supply is much more abundant than gold – and recycling rates can also affect prices.
Silver is widely used in the industry, particularly in sectors such as electronics or solar energy, since it has one of the highest electrical conductivities of all metals, surpassing copper and gold. An increase in demand can increase prices, while a decrease tends to reduce them. The dynamics in US economies, China and India can also contribute to price fluctuations: for the US and particularly China, its large industrial sectors use silver in several processes; In India, the demand for consumers for precious metal for jewelry also plays a key role in pricing.
Silver prices tend to follow gold movements. When gold prices go up, silver typically follows the same path, since their status as shelter is similar. The gold/silver ratio, which shows the number of ounces of silver necessary to match the value of an ounce of gold, can help determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that silver is undervalued, or that gold is overvalued. On the contrary, a low ratio could suggest that gold is undervalued in relation to silver.
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.
