Silver Price Forecast: XAG/USD rallies to near $33.20 amid geopolitical and trade worries

LONDON (February 20) Silver price (XAG/USD) surges almost 1.5% to near $33.20 in European trading hours on Thursday. The white metal strengthens as investors remain concerned over deepening global trade tensions. United States (US) President Donald Trump announced on Wednesday that he is planning to impose tariffs on lumber, cars, semiconductors, and pharmaceuticals over the next month or sooner.

Market participants expect President Trump's tariffs would lead to a global trade war, which would result in an economic slowdown across the globe.

Meanwhile, Donald Trump has also ordered his team to prepare reciprocal tariffs, which are expected to be unveiled in April.

On the geopolitical front, Ukraine President Volodymyr Zelenskyy feeling left out of Russia-US peace talks to end the war in Ukraine has raised some uncertainty. Ukrainian leader has condemned US Trump for initiating peace talks with Russia without his involvement in discussing the issue in Saudi Arabia.

Signs of a slowdown in the Russia-Ukraine peace talks would boost demand for safe-haven assets, such as Silver.

Meanwhile, the safe-haven demand of the US Dollar has remained weak even though traders becoming increasingly confident that the Federal Reserve (Fed) will keep interest rates in the current range of 4.25%-4.50% for longer. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, declines to near 106.90.

FXStreet