Silver prices has climbed to a one-week high as concerns over a potential global trade war intensified, bolstering safe-haven demand. The weaker dollar further supported the precious metal, making it more attractive to international buyers. Concurrently, gold also experienced upward momentum as investors sought refuge from market uncertainty.
The dollar index has reached a three-month low, influenced by the euro’s strength following Germany’s announcement of increased spending and relaxed borrowing constraints. A weaker dollar typically benefits precious metals, enhancing their affordability for buyers using other currencies.
Market participants are closely monitoring the impact of trade tariffs on the global economic landscape. President Trump recently cautioned Americans about potential economic discomfort resulting from these levies, while defending his policies aimed at reshaping the U.S. economy. The prospect of rising inflation coupled with a slowdown in global growth could further strengthen the appeal of gold and silver as reliable stores of value amidst economic turbulence.