Silver prices held above $32 per ounce on Thursday, close to a three-month high reached in the previous session.
Silver steady as trade war fears ease
This strength came as the US dollar weakened considerably, following a reduction in fears of a global trade war and its potential inflationary impact. The US and China have adopted a more cautious stance on tariffs, with Presidents Trump and Xi scheduled to discuss trade and potentially agree to roll back some existing tariffs. This prospect lessens the risk of increased US inflation, reinforcing market expectations of two Federal Reserve rate cuts this year. Looking at supply and demand, the Silver Institute recently predicted a fifth consecutive year of substantial silver market deficits in 2025.
Industrial demand to drive silver deficit
This deficit is projected to be driven by strong industrial demand and robust retail investment, which are expected to offset weaker consumption in jewelry and silverware.
