Silver (XAG/USD) prices faced selling pressure above the key $33.00 level during North American trading hours on Friday (21/2). The white metal declined as the US Dollar (USD) strengthened, with Federal Reserve (Fed) officials continuing to point to restrictive monetary policies. The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, rose near 106.75.
On Thursday, Fed Governor Adriana Kugler said that the central bank should keep lending rates "steady" for "some time," noting that the net effect of US President Donald Trump's new economic policies is "highly uncertain" and will depend on the "specifics."
The scenario of the Fed maintaining restrictive interest rates bodes ill for precious metals such as Silver prices.
Meanwhile, concerns about President Trump's tariff agenda will keep Silver prices on the back foot. On Thursday, Trump announced that he could impose tariffs on lumber and forest products, cars, pharmaceuticals and semiconductors over the next month or sooner. Market participants expect Trump's tariff agenda to cause a global economic slowdown.
Investors are also focused on developments in Russia-US talks to end the war in Ukraine. This week, Donald Trump agreed to hold more talks with Russian leader Vladimir Putin to negotiate a ceasefire with Ukraine. A positive outcome from the peace talks would weaken the appeal of Silver as a safe haven asset. (Newsmaker23)
Source: FXstreet
