Silver Price Forecast: XAG/USD slips below $54.00 amid easing safe-haven demand

Silver prices slipped below $54.00 on Tuesday as market investors turned cautious amid easing safe-haven demand. The decline in XAG/USD occurred after opening at a bullish gap, with prices trading around $53.70 per troy ounce during Asian trading hours. This drop in silver prices came amid easing safe-haven demand following US President Donald Trump's ruling out of immediate military action against Iran.

In an interview with Al Jazeera, Trump stated, "There will not be a strike today." However, market anxiety persists over the possibility of strikes resuming after this week's Israeli elections and next week's US midterm elections. Iran has reportedly prepared to retaliate by targeting Israel and the UAE. Regional tensions in the Arabian Peninsula remained elevated, with Yemen's Houthis declaring they will continue targeting Saudi Arabia's King Khalid Airport in Riyadh.

Saudi officials reported that flight operations had resumed, despite the Houthis claiming responsibility for attacks on the airport and Saudi oil facilities. Global energy prices were pushed up by the ongoing conflict, reinforcing inflation concerns and solidifying expectations for higher interest rates. The upcoming Federal Reserve policy decision, widely expected to hold interest rates steady before potentially pursuing a rate hike in December, also weighed on non-yielding assets like Silver.

Traders are focusing on the Fed's decision, which could create headwinds for Silver and other precious metals.