At 12:37 GMT, XAG/USD is trading $31.78, up $0.03 or +0.10%.
Trump’s Tariffs Add Pressure to Silver
Silver’s outlook is closely tied to U.S. President Donald Trump’s tariff policies, with his recent probe into new copper tariffs stirring inflation fears. While inflation often boosts precious metals, silver’s dual role as an industrial metal complicates its response.
Tariffs could disrupt industrial demand, particularly if economic growth slows, making silver more vulnerable than gold in a trade dispute scenario. Traders are wary that while gold might gain from safe-haven flows, silver could face headwinds if broader economic activity stalls.
Gold’s Impact on Silver Market
Gold’s recent price action also influences silver. Gold steadied on Wednesday after a sharp 2% drop on Tuesday, having hit a record high of $2,956.31 on Monday. While profit-taking has cooled gold’s rally, the metal remains in a broadly bullish trend.
Any renewed strength in gold could support silver, especially if investors seek value in silver as a cheaper alternative. However, if gold struggles to break higher, silver may remain under pressure, particularly if industrial demand softens in response to economic data or escalating tariffs.
Economic Data Could Be a Silver Wildcard
Upcoming U.S. economic data, including Friday’s Personal Consumption Expenditures (PCE) report, could sway silver prices. Inflationary pressures from tariffs may influence Federal Reserve policy, potentially impacting silver’s industrial demand outlook.