Silver prices climbed toward $33 per ounce on Thursday, rebounding from the previous session’s losses as heightened trade and geopolitical uncertainties bolstered demand for safe-haven assets.
Silver rises amid trade and geopolitical concerns
The rally in silver mirrored gains in gold, with investors seeking refuge amid renewed economic and political instability.
Earlier this week, US President Donald Trump announced plans to impose 25% tariffs on imports of automobiles, semiconductors, and pharmaceuticals, reigniting fears of a broader global trade war. Market concerns were further exacerbated by Trump’s controversial remarks referring to Ukrainian President Volodymyr Zelenskiy as a dictator, which cast doubt over ongoing peace negotiations with Russia aimed at ending the prolonged war in Ukraine.
Fed published last meeting minutes
Meanwhile, Federal Reserve officials reiterated in their January meeting that they would prefer to see further progress on inflation before proceeding with interest rate cuts. Policymakers expressed caution over the potential inflationary impact of Trump’s proposed tariffs, as higher import costs could slow the pace of monetary easing. Rising interest rates typically weigh on non-yielding assets like silver, but in this case, the metal continued to find support from its dual role as both a safe-haven and an industrial asset, particularly as concerns over supply chain disruptions in semiconductor and electronics manufacturing added to its appeal.
Looking ahead, traders will closely monitor upcoming US inflation data and Federal Reserve signals, as well as geopolitical developments, to gauge the future direction of silver prices.
