Silver remained just below $32 per ounce on Tuesday, hovering near three-month highs as safe-haven demand for precious metals surged following the latest US tariffs.
Silver remains below $32
Market uncertainty intensified after US President Donald Trump signed an executive order imposing 25% tariffs on steel and aluminum imports "without exceptions or exemptions," fueling fears of higher input costs, inflationary pressures, and a potential escalation of the global trade war.
Investors were also bracing for the release of the latest US inflation data and closely monitoring upcoming comments from Federal Reserve Chair Jerome Powell later this week. Any indications of persistent inflation could reinforce expectations of prolonged high interest rates, which might weigh on non-yielding assets like silver. However, continued concerns over economic instability and trade disruptions have kept demand for silver robust as a hedge against market volatility.
Silver prices bolstered by strong industrial demand
Beyond its role as a safe-haven asset, silver prices have also been bolstered by strong industrial demand, particularly from the renewable energy and electronics sectors. The metal is a key component in solar panel production, and with global investments in green energy projects accelerating, demand is expected to remain firm. Additionally, forecasts of ongoing supply deficits due to mining disruptions and increased industrial consumption have further contributed to silver’s upward trajectory.
Eyes on central banks moves
Looking ahead, traders will keep a close watch on macroeconomic developments, central bank policy signals, and shifts in geopolitical risks, all of which could shape silver's price movements in the coming weeks.
