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04.12.202413:34 Forex Analyse & Reviews: XAG/USD: Trump's Tariffs and a Strong Dollar Could Impact Silver in 2025

Relevance up to 05:00 UTC--5

Exchange Rates 04.12.2024 analysis

Donald Trump's election victory has been a setback for silver, as the threat of tariffs looms over its industrial demand. However, silver still has several key drivers that may support price increases next year.

Exchange Rates 04.12.2024 analysis

One of the main factors is demand for silver in China, which continues to grow. China is already a leader in industrial silver demand, particularly in the production of electrical and electronic components. India is also helping to sustain global demand for silver. India is a major player in this market due to its steady and robust demand.

In addition, the Federal Reserve's trajectory for lowering interest rates is now more uncertain than it appeared in September. Still, analysts expect that further rate cuts will provide momentum to silver prices. Projections suggest two or three, or perhaps even more, interest rate reductions in 2025, which would positively impact the global silver and precious metals market. Historically, when rates are lowered, investors tend to shift away from certain assets into hard assets like silver.

2024 was an excellent year for silver, with the metal rising by approximately 27–28%, while its price remained relatively stable. In 2025, silver prices are expected to average $32–33 per ounce, with a potential peak of $36–38.

Silver remains a valuable resource, and its future is closely tied to global trends such as the Green Revolution.

Exchange Rates 04.12.2024 analysis

Overnight, silver prices gained momentum and exceeded $31 per ounce.

Exchange Rates 04.12.2024 analysis

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Irina Yanina,
Analytical expert of InstaSpot
© 2007-2024
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