Silver (XAG/USD) is hovering near a low point in three weeks around $30.50, continuing a downward trend for the third consecutive day. The drop in the precious metal’s value is mainly driven by a stronger U.S. dollar, which gained momentum as expectations for a significant rate cut by the Federal Reserve in November diminished. According to the CME Group’s FedWatch Tool, there is an 85% likelihood of a 25-basis-point rate cut, reducing hopes for aggressive monetary easing. Consequently, the U.S. dollar has reached a multi-week high, exerting downward pressure on silver prices. Shift in Russia’s Strategy and Rise in Industrial Demand Enhance Prospects Despite this decline, Russia’s decision to increase its silver reserves could present a positive long-term outlook. As per a recent draft of Russia’s Federal Budget, the country aims to expand its holdings of precious metals, including silver, gold, platinum, and palladium. This strategic realignment underscores the increasing importance of silver in global markets, especially as nations seek to diversify assets amid economic uncertainties. Furthermore, the growing use of silver in clean energy technologies like solar panels and electric vehicles is boosting industrial demand. Investors looking to capitalize on this trend may explore options such as the Sprott Physical Silver Trust (PSLV), which offers exposure to silver without the complications of physical storage. Alternatively, the Sprott Physical Gold and Silver Trust (CEF) provides a balanced approach by including exposure to both metals. Influence of a Strong U.S. Dollar and Global Developments on Silver The robust U.S. dollar, fueled by expectations of gradual Fed rate cuts and positive economic indicators, continues to weigh on silver prices. Additionally, easing geopolitical tensions in the Middle East are reducing the demand for safe-haven assets like silver. As geopolitical risks subside and the U.S. dollar remains resilient, silver may face ongoing pressure in the short run. Nevertheless, the potential rise in global demand, particularly from Russia, could pave the way for a sustained uptrend, making silver an appealing investment for industrial and precious metal portfolios.