Silver price eases amid profit-taking, US data anticipation
Silver (XAG/USD) moves lower on Tuesday, trading around $57.50 at the time of writing, down 0.70% on the day. The white metal is easing after Monday’s solid upward move, as market participants trim exposure ahead of several key US macroeconomic releases.
  • Silver prices retreat on Tuesday as investors take profits after Monday’s strong rally.
  • Expectations of Federal Reserve rate cuts remain a key supportive factor for precious metals.
  • Traders focus on upcoming US data releases, including ISM Services and the PCE index.

Silver (XAG/USD) moves lower on Tuesday, trading around $57.50 at the time of writing, down 0.70% on the day. The white metal is easing after Monday’s solid upward move, as market participants trim exposure ahead of several key US macroeconomic releases.

A mild recovery in the US Dollar (USD) and firmer US Treasury yields are adding pressure across the precious-metals complex, a pattern seen during previous episodes of risk aversion.

Still, the downside remains contained as Silver continues to benefit from a broadly supportive macro environment. Investors expect the Federal Reserve (Fed) to ease policy as soon as next week’s meeting, with markets now pricing a strong chance of a 25-basis-point cut. This dovish bias underpins demand for non-yielding assets and helps limit the current pullback.

From a data perspective, Tuesday brings no major US releases, leaving Silver primarily driven by USD fluctuations and broader market sentiment. Traders are already turning their attention to key indicators that could influence Fed expectations later in the week, with the Institute for Supply Management’s (ISM) Services Purchasing Managers Index (PMI) and ADP employment on Wednesday, followed by Personal Consumption Expenditures (PCE) on Friday, the Fed’s preferred inflation gauge. Softer readings would reinforce rate-cut bets, typically a supportive scenario for Silver.

Geopolitics also remains a background driver for safe-haven demand. Ongoing uncertainty surrounding Russia-Ukraine developments helps maintain a degree of risk aversion, even if Silver’s bullish momentum pauses for now.

Silver FAQs

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

يعتمد أكثر من مليون مستخدم على FXStreet للحصول على بيانات سوقية لحظية، وأدوات رسوم بيانية، ورؤى خبراء، وأخبار الفوركس. يساعد تقويمهم الاقتصادي الشامل والندوات التعليمية عبر الويب المتداولين على البقاء على اطلاع واتخاذ قرارات محسوبة. لدى FXStreet فريق يضم حوالي 60 محترفًا موزعين بين مقر برشلونة ومناطق عالمية مختلفة.
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XAUUSD
تغيير يوم واحد
+0%
0
XAGUSD
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+0%
0
XPTUSD
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+0%
0

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