Silver Price: XAG/USD moves above $30.00 due to weaker US Dollar

LONDON (January 7) Silver price (XAG/USD) extends its winning streak for the fourth successive day, trading around $30.20 per troy ounce during the European hours on Tuesday. The price of the dollar-denominated grey metal gains momentum as a weaker US Dollar (USD) makes it more affordable for buyers using foreign currencies, thereby boosting Silver demand.

The US Dollar Index (DXY), which tracks the USD's performance against six major currencies, remains under pressure for the third straight session following reports that the incoming Trump administration might adopt a more targeted approach in applying tariffs. The DXY falls to near 108.00 at the time of writing.

However, Trump refuted a Washington Post report suggesting his team was considering limiting the scope of his tariff plan to only cover specific critical imports. The US Dollar may find some support following President-elect Donald Trump's comments that his tariff policy will not be scaled back.

US ISM Services Purchasing Managers Index (PMI) is set to be released on Tuesday. On Wednesday, markets will focus on the Minutes from the Federal Reserve's (Fed) December policy meeting. Investors will closely monitor the US employment data for December, which is due later on Friday. This report could offer some hints about the Fed’s interest rate outlook in 2025.

Silver demand was further bolstered by a positive economic outlook in China, the world's largest consumer of the metal. Beijing recently committed to adopting "more proactive" macroeconomic policies and lowering interest rates this year to drive economic growth.

FXStreet