The post XAG/USD rises above $33.00, receives support from safe-haven demand appeared on BitcoinEthereumNews.com.

Silver price appreciates as safe-haven demand counterbalances commodities’ concerns. Trump’s “One Big Beautiful Bill” passed the US House of Representatives and is now headed to the Senate floor. US debt and tariff concerns undermined the Silver demand in the photovoltaic industry. Silver price (XAG/USD) edges higher after registering losses over 1% in the previous session, hovering around $33.10 per troy ounce during the Asian trading hours on Friday. The manufacturing-sensitive commodities, including Silver, faced challenges due to growing concerns regarding the increase in the fiscal deficit in the United States (US). However, rising safe-haven demand over these fiscal concerns could offset the demand-related threat surrounding such commodities. On Thursday, US President Donald Trump’s “One Big Beautiful Bill” passed the US House of Representatives and is on its way to the Senate floor. The US House of Representatives approved Trump’s budget by one vote. The proposal is expected to increase the deficit by $3.8 billion, as it would deliver tax breaks on tip income and US-manufactured car loans, according to the Congressional Budget Office (CBO). Silver attracts sellers as uncertain US economic conditions, along with tariff concerns, undermine strong momentum for the photovoltaic industry. Silver is used in various industrial applications, such as electronics, solar panels, and automotive components. In the first quarter of 2025, China’s wind and solar capacity rose to nearly 1,500 GW due to a 60GW jump in photovoltaic power. Given China’s status as one of the world’s largest manufacturing hubs, the country’s industrial demand for Silver is significant. Moreover, solar power output in Europe also surged by 30% annually in the first quarter. Moody’s downgraded the US credit rating from Aaa to Aa1 and predicted that US federal debt is expected to climb to around 134% of GDP by 2035, up from 98% in 2023, with the…

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Filed under: News - @ May 23, 2025 4:24 am