Silver Price Forecast: XAG/USD remains below $31.50 after PBoC policy decision

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Silver Price Forecast: XAG/USD remains below $31.50 after PBoC policy decision
XAGUSDMacroeconomicsCommodities
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Silver price (XAG/USD) retraces its recent gains, trading around $31.20 per troy ounce during the Asian session on Wednesday.

Silver price remains subdued as PBoC maintained the benchmark interest rate at 3.1% for November. The demand for safe-haven silver could increase due to heightened tensions in the Russia-Ukraine conflict. The dollar-denominated Silver gained demand as the US Dollar experienced profit-taking selling after a recent rally. Silver price retraces its recent gains, trading around $31.20 per troy ounce during the Asian session on Wednesday.

It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

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