FX.co ★ Silver Holds Firm Amid Dollar Weakness

Silver prices remained stable at approximately $36 per ounce on Tuesday, following a robust performance in June. This stability is attributed to a weakening dollar influenced by expectations of further Federal Reserve interest rate cuts, increasing fiscal worries, and ongoing trade uncertainties. A depreciating dollar generally enhances demand for dollar-denominated commodities like silver, as it becomes less expensive for international buyers. Investors are now shifting their focus to the forthcoming US employment data, where indications of a fragile labor market might bolster the argument for a potential rate reduction as soon as July. Concurrently, market players are closely observing the US Senate's progress on President Trump's extensive tax-cut and spending proposal, which aims for approval before the July 4 deadline. This legislation is expected to increase the national debt by $3.3 trillion, heightening fiscal concerns. On the trade front, attention is directed towards the US's ability to finalize agreements with key trading partners prior to the end of Trump's 90-day tariff suspension next week.