Silver Price Forecast: XAG/USD rises to near $76.50 but eyes third weekly decline

Silver price (XAG/USD) gains ground after registering 11.5% losses in the previous session, trading around $76.60 per troy ounce during the early European hours on Friday. However, the silver price is poised for a third consecutive weekly decline as volatility resurfaces.

Traders had no clear catalyst to explain Thursday’s drop, but parallel losses in equities and cryptocurrencies suggest broad forced liquidation, likely intensified by systematic and algorithmic trading flows.

Investors are now focused on the latest US inflation data, which could help shape expectations for Federal Reserve policy. Headline inflation is forecast to ease to 2.5% from 2.7%, while core inflation is expected to slow to 2.5% from 2.6%. A softer print could give the Federal Reserve (Fed) room to resume rate cuts after holding steady at its first meeting of the year.

However, the CME FedWatch tool suggests that financial markets are now pricing in nearly a 92% probability that the Fed will leave rates unchanged at its March meeting, up from 82% the previous week.

The Fed is expected to deliver roughly two 25-basis-point rate cuts by year-end. Markets now price in a first move in July rather than June.

The safe-haven demand for Silver weakens as US President Donald Trump indicated that negotiations with Iran could continue for up to a month, lowering the immediate risk of military action. Trump is currently pursuing a diplomatic strategy aimed at curbing Iran’s nuclear program.