Silver (XAG/USD) clawed back losses from the previous session, trading near $33.30 per troy ounce during Wednesday’s Asian hours. The rebound comes despite broader headwinds facing precious metals, as a firmer U.S. Dollar (USD) continues to weigh on demand.
The dollar-denominated metal has struggled under the pressure of a strengthening Greenback, which makes commodities like silver more expensive for international buyers. The USD gained momentum following indications from Japan that it may reduce government debt issuance, a move that buoyed global bond markets and pushed U.S. Treasury yields lower. At present, the yields on 10-year and 30-year U.S. bonds stand at 4.46% and 4.97%, respectively.
The market’s appetite for silver as a safe-haven asset also diminished after signs of easing trade tensions between the United States and the European Union. President Donald Trump extended the deadline for a proposed 50% tariff on EU imports from June 1 to July 9, following a phone call with European Commission President Ursula von der Leyen. In response, Brussels agreed to accelerate trade negotiations, reducing fears of a transatlantic trade clash.
Despite these pressures, silver found renewed support amid escalating concerns over the U.S. fiscal outlook. Anxiety has intensified ahead of a Senate vote on President Trump’s sweeping “One Big Beautiful Bill,” which is projected to increase the federal deficit by $3.8 billion. The legislation includes significant tax cuts, expanded spending, and a hike in the debt ceiling. The potential for persistently elevated bond yields stemming from the bill could sustain higher borrowing costs across the economy—a scenario that often boosts demand for precious metals as a hedge.
While silver’s immediate gains may be capped by dollar strength, its role as a store of value amid fiscal uncertainty may keep buyers engaged in the near term.
