Silver Price Forecast XAG/USD remains below $30.50 after paring losses

Silver prices fell by nearly 3% following reports that Israel and Hezbollah are close to reaching a ceasefire agreement.

President-elect Donald Trump plans to impose tariffs on imports from Mexico, Canada and China.

The non-yielding Silver struggled due to bond market optimism following the selection of Scott Bessent as the US Treasury Secretary.

Silver price (XAG/USD) hovers around $30.40 per troy ounce during the Asian trading hours on Tuesday, following a nearly 3% drop in the previous session. This downside risk for safe-haven assets like Silver metal is linked to reports suggesting that Israel and Hezbollah are close to reaching a ceasefire agreement.

Additionally, the price of dollar-denominated Silver has been pressured by a stronger US dollar (USD) after President-elect Donald Trump announced plans to impose a 25% tariff on all imports from Mexico and Canada starting on his first day in office, alongside an additional 10% tariff on goods from China. A stronger US dollar makes precious metals more expensive for foreign buyers, negatively affecting Silver demand.

The non-yielding Silver faced downward pressure due to optimism in the bond market following the selection of Scott Bessent as US Treasury Secretary in the incoming administration. Bessent has advocated for a phased approach to trade restrictions and expressed a willingness to negotiate tariff levels in coordination with President-elect Donald Trump.