Silver Price Forecast: XAG/USD hovers near $32.50 amid increased market caution
LONDON (February 24) Silver price (XAG/USD) edges higher after registering gains in the previous session, trading around $32.60 during the European hours on Monday. The dollar-denominated Silver attracts buyers as the US Dollar (USD) weakens following the downbeat US economic data including Jobless Claims and S&P Global Purchasing Managers' Index (PMI) released last week.
The US Composite PMI fell to 50.4 in February, down from 52.7 in the previous month. In contrast, the Manufacturing PMI rose to 51.6 in February from 51.2 in January, surpassing the forecast of 51.5. Meanwhile, the Services PMI declined to 49.7 in February from 52.9 in January, falling short of the expected 53.0. US Initial Jobless Claims for the week ending February 14 rose to 219,000, exceeding the expected 215,000.
The safe-haven Silver receives support from ongoing trade and geopolitical uncertainties. Last week, US President Donald Trump threatened to impose tariffs on key sectors, including cars, semiconductors, pharmaceuticals, and lumber, keeping markets on edge. Trump also signed a memorandum on Friday instructing the Committee on Foreign Investment in the United States (US) to limit Chinese investments in strategic sectors.
Meanwhile, traders remain focused on developments related to the ongoing conflict between Russia and Ukraine, which enters its fourth year on Monday. European Union leaders are expected to convene for an extraordinary summit on March 6 to discuss additional support for Ukraine and European security assurances. This follows US President Donald Trump’s initiative to engage Russia in talks aimed at ending the war, though notably without the involvement of Ukraine or the European Union. Additionally, a senior Russian diplomat indicated that Russian and US teams plan to meet this week to explore ways to improve bilateral relations.
In Germany, preliminary results confirm the win for the Christian Democratic Union (CDU) and its ally, the Christian Social Union (CSU), led by chancellor candidate Friedrich Merz. Market attention now shifts to the coalition-building process, with stable leadership seen as crucial for advancing key fiscal reforms.
FXStreet
