Silver (XAG/USD) prices are currently holding below the psychological level of $37.00, trading around $36.70 per troy ounce in Asia, after halting a three-day rally in a row. Although demand for safe-haven assets has strengthened amid geopolitical tensions—especially the ongoing conflict in Gaza and President Donald Trump's threat of additional tariffs on pro-BRICS countries—silver prices are still being pressured by a stronger US dollar and easing expectations of a rate cut by the Federal Reserve. Tariff uncertainty keeps investors on the sidelines, but non-yielding assets such as silver lose some of their appeal when interest rates are expected to remain high for longer.

Solid US jobs data and comments from Fed officials have dampened expectations of a rate cut in July, pushing up bond yields and weakening the outlook for the precious metal. However, the potential for further conflict and trade tensions could keep demand for silver high as a hedge. Technically, repeated rejections above $37.00 suggest strong resistance, while near-term support is seen around $36.30–$36.00. Markets will be closely watching the Fed's policy direction, geopolitical dynamics, and the contents of Trump's tariff letter this week to determine the next direction.
Source: FXStreet