Silver Price Struggles Below $37.00 Despite Renewed Safe-Haven Demand

Silver Price Forecast: XAG/USD Holds Below $37.00 Amid Trump’s Tariff Threats

Trump’s New Trade Threats Stir Safe-Haven Flows but Fail to Lift Silver

Silver (XAG/USD) is trading under pressure around $36.70 during the early Asian session on Monday, breaking a three-day winning streak. Despite a mild uptick in risk aversion, the precious metal struggles to reclaim bullish momentum due to dampened Fed rate cut expectations and rising US Dollar (USD) strength.

Trump’s BRICS Tariff Threat Caps Upside

Fresh concerns emerged after US President Donald Trump tweeted:

"Any Country that aligns with the Anti-American policies of BRICS, will be assessed an ADDITIONAL 10% Tariff. There will be NO exceptions to this policy."

This hardline stance has spooked global markets, prompting renewed safe-haven demand across assets like Gold and Bonds. However, Silver, which does not yield interest, has seen muted upside, especially as investors scale back expectations for a July Fed rate cut.

Fed Policy Outlook Pressures Non-Yielding Metals

While geopolitical tensions typically favor Silver, the lack of imminent monetary easing from the Federal Reserve limits its appeal. The stronger US Dollar—buoyed by both safe-haven flows and reduced odds of rate cuts—further adds to headwinds for the metal.

Moreover, Trump is expected to sign 12 to 15 tariff letters later today, targeting a broad swath of US trade partners. These measures, if enacted, could be finalized by July 9 and effective by August 1, adding another layer of uncertainty to the global economic outlook.

Want more real-time Silver insights? Visit Tredu’s Commodities Section.

Key Takeaways

• XAG/USD trades near $36.70, breaking its short-term bullish momentum.
• Trump’s tariff warning against BRICS countries stokes market risk aversion.
• Stronger USD and lower Fed rate cut odds weigh on Silver demand.
• Additional trade developments expected later this week may influence price action.