Silver remained stable above $30.30 per ounce on Monday, following a week of heightened volatility. Cautious sentiment dominated the markets in anticipation of Donald Trump’s inauguration.
Silver steady ahead of Trump inauguration
Investors are watching Trump’s pledges to raise tariffs, curb immigration, cut taxes, and roll back regulations—policies expected to have inflationary effects. However, softer-than-expected U.S. economic data released last week has sparked speculation about the Federal Reserve's potential interest rate cuts this year. Such moves could bolster commodity demand by stimulating economic growth and weakening the dollar.
At the same time, a positive phone call between U.S. President-elect Trump and Chinese President Xi Jinping on Friday boosted hopes for reducing U.S.-China tensions, further adding to market optimism.
Silver faces uncertainty amid inflation and policy concerns
These factors create a complex backdrop for silver, with inflation concerns and potential monetary policy changes driving investor sentiment.
