Silver prices have faced challenges due to decreased demand for safe-haven assets after a ceasefire was announced between Israel and Iran. Following Trump’s announcement, Silver (XAG/USD) dropped to about $36.10 per troy ounce during Tuesday’s Asian trading. The ceasefire will take effect immediately for Iran and after 12 hours for Israel, responding to missile activities at the Al Udeid Air Base in Qatar. This truce has eased geopolitical tensions, reducing the demand for Silver and other precious metals. Federal Reserve Vice Chair Michelle Bowman expressed support for a possible interest rate cut in July to tackle growing risks in the job market. She mentioned that inflation is returning to 2%, downplaying worries about tariffs affecting inflation. Fed Governor Christopher Waller suggested that the central bank might soon relax monetary policy, depending on improvements in labor and inflation data. Jerome Powell is expected to discuss interest rates during his upcoming testimony before the U.S. Congress. Silver’s demand is influenced by many factors, including geopolitical instability, industrial use, and the value of the U.S. Dollar. As a non-yielding asset, Silver usually benefits from lower interest rates and demand in areas like electronics and solar energy. The recent de-escalation of conflict in the Middle East has reduced the immediate need for safe investments. Following the ceasefire announcement, Silver’s price fell to around $36.10 per troy ounce, which aligns with its usual behavior during more stable times. With less urgency for safe-haven investments, the demand for Silver typically decreases. However, reducing tensions is not the only aspect affecting prices. Focus is shifting to U.S. monetary policy. With Bowman hinting at possible rate changes in July, and Waller showing openness to policy easing based on labor and inflation data, it’s becoming harder to ignore potential impacts on metals prices. The performance of the U.S. Dollar is closely linked here. If the Fed opts for lower rates, a weaker Dollar could boost Silver prices, even without new geopolitical tensions. Powell’s upcoming speech could quickly change expectations. Traders will be listening closely for any signals that indicate a move towards easing. It’s not just about his words, but also the emphasis on certain data points. Consistent themes around a fragile job market or slowing inflation could strengthen current speculation. Bowman’s comments about the decreasing impact of tariffs also add complexity. With one inflation concern less likely to make the Fed cautious, a slow rebound in data could lead to quicker action from them. Currently, we find ourselves in a waiting game that presents opportunities—especially if positions are flexible. Any new economic or political unrest could rekindle demand for Silver. Furthermore, even in the absence of unrest, a shift towards softer policy could suffice. The strong relationship between interest rate expectations and non-yielding assets is crucial to consider. Industrial demand, particularly from solar technology and electronics manufacturing, also plays a vital role. If these sectors remain stable or improve with lower borrowing costs, Silver’s support may extend beyond geopolitical or central bank influences. Increased inventory restocking could further elevate demand. We’ll closely monitor Powell’s testimony for insights, although immediate action may not be necessary. Often, it’s the tone and subtle shifts in emphasis that provide more guidance than direct statements. Understanding these nuances is key to making informed positions, rather than simply reacting to the news.

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