Silver (XAG/USD) prices recovered from recent losses, trading around $30.80 per troy ounce during the Asian trading session on Friday (1/24). Demand for non-interest bearing Silver increased following comments made by US President Donald Trump on Thursday night.

Trump expressed his desire for the US Federal Reserve (Fed) to cut interest rates without delay. "With oil prices going down, I will demand that interest rates be cut immediately, and interest rates should be cut all over the world," he said during the World Economic Forum in Davos, Switzerland.

Additionally, industrial demand for Silver may have strengthened following comments by US President Donald Trump about his preference to avoid tariffs on China, the world's largest metals consumer and manufacturing powerhouse. Trump expressed optimism about reaching a deal with China following a conversation with President Xi Jinping on Thursday, indicating potential progress in US-China trade negotiations.

Traders are likely to continue to turn to safe-haven assets like Silver, remaining cautious amid uncertainty over the impact of Trump's proposed tariffs and immigration policies. On Tuesday, Trump also announced plans to impose a 25% tariff on imports from Canada and Mexico, along with duties on the European Union.

The US Dollar Index (DXY), which measures the performance of the US Dollar against a basket of six major currencies, continued to decline as US Treasury yields depreciated amid improving risk sentiment. The DXY has dropped below 107.00, with the 2-year and 10-year US Treasury yields standing at 4.26% and 4.63%, respectively, at the time of writing. This shift could contribute to the uptrend in non-yielding metals like Silver, which are gaining in demand.(AL)

Source: FXstreet