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

Silver price (XAG/USD) declines after opening at a bullish gap, trading around $53.70 per troy ounce during Asian hours. Silver price falls as safe-haven demand eases after US President Donald Trump ruled out immediate military action against Iran. Speaking to 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, with reports indicating Iran is prepared to retaliate by targeting Israel and the UAE.

Meanwhile, regional tensions remain elevated in the Arabian Peninsula. Yemen's Houthis declared on Sunday that they will continue targeting Saudi Arabia's King Khalid Airport in Riyadh, according to Reuters. This announcement arrived just hours after Saudi officials reported that flight operations had resumed. Hostilities escalated over the weekend as the Houthis claimed responsibility for attacks on both the airport and Saudi oil facilities on Saturday, while Saudi Arabia confirmed it intercepted additional incoming missiles and drones on Sunday while restoring partial airport operations.

The broader Middle East conflict continues to push up global energy prices, reinforcing inflation concerns and solidifying expectations for higher interest rates. Elevated interest rate expectations typically create headwinds for non-yielding assets, including Silver and other precious metals.

Traders are focusing on the upcoming Federal Reserve policy decision. The central bank is widely expected to hold interest rates steady before potentially pursuing a rate hike in December. According to the CME FedWatch Tool, market pricing reflects a 90.6% probability of a rate pause at the October 27–28 policy meeting, alongside a 79.7% chance of an increase in December.

CTA selling pressure pushes gold toward key support

According to strategists at TD Securities, "CTAs have been heavy sellers of gold, with prices now reaching key support levels," underscoring the extent of systematic selling that has recently weighed on the metal.