Silver prices declined toward $31 per ounce on Monday, extending losses for a second consecutive session as the US dollar strengthened following the imposition of new tariffs by President Donald Trump.
Silver prices decline toward $31
Over the weekend, the US announced a 25% tariff on goods from Mexico and Canada, along with a 10% levy on imports from China, triggering retaliatory measures from the affected nations. This escalation in trade tensions fueled concerns over potential disruptions in global supply chains, slower economic growth, and resurgent inflation, dampening investor sentiment.
USD effect
The stronger dollar, which makes silver more expensive for foreign buyers, further pressured the metal’s price. Additionally, expectations of fewer interest rate cuts from the US Federal Reserve added to bearish sentiment, as higher rates increase the opportunity cost of holding non-yielding assets like silver.
Outlook is still positive
Despite these headwinds, silver’s long-term outlook remains supported by strong industrial demand, particularly in the renewable energy sector, electric vehicles, and advanced electronics. The Silver Institute recently projected a fifth consecutive year of significant market deficits for the metal in 2025, driven by robust demand from industry and retail investment. Analysts expect these factors to offset weaker consumption in jewelry and silverware, potentially limiting silver’s downside in the longer term. Investors now turn their attention to upcoming US economic data releases and central bank signals for further direction in the precious metals market.
