Silver Price Forecast: XAG/USD trades near 109.00 after revering recent losses

• Silver rises on safe-haven demand as US shutdown risks grow after Schumer opposes funding package.

• The precious metal rises as traders turn cautious amid Federal Reserve uncertainty.

• Trump warned that tariffs on South Korean goods could rise to 25% from 15% over deal approval delays.

Silver price (XAG/USD) continues its four-day winning streak after recovering daily losses, trading around $108.90 during the Asian hours on Tuesday. The safe-haven Silver rebounded amid rising political and trade risks.

The US government is heading toward a potential partial shutdown after Senate Democratic leader Chuck Schumer vowed to oppose a funding package that includes appropriations for the Department of Homeland Security, leaving Congress facing a January 30 deadline to avert a shutdown.

Precious metals, including Silver, move higher as traders turn cautious amid uncertainty surrounding the Federal Reserve (Fed). US President Donald Trump said last week he would soon announce his nominee to replace Fed Chair Jerome Powell, fueling speculation that the next chair may favor faster interest rate cuts. Focus is shifted toward the Federal Reserve’s (Fed) policy decision on Wednesday.

President Trump warned he could lift tariffs on South Korean goods to 25% from 15%, blaming delays in Seoul’s legislature approving a trade deal. Trump also said the US would impose 100% tariffs on Canadian goods if Ottawa were to strike a trade agreement with China, the BBC reported over the weekend. In response, Canadian Prime Minister Mark Carney said on Sunday that Canada has no plans to pursue a free trade deal with Beijing.

Silver metal also gained from a broader pullback in sovereign bonds and currencies, the so-called debasement trade, as investors rotate into real assets amid rising concerns over heavy fiscal spending in major economies.