Silver prices stabilized above $33 per ounce on Tuesday, recovering from recent declines as trade uncertainties and broader economic concerns boosted demand for safe-haven assets.
Silver stabilizes on safe-haven demand
The price rebound was partly driven by hopes that US President Donald Trump might adopt a more targeted approach to tariffs ahead of the April 2 deadline, which provided some temporary relief to markets. However, his pledge on Monday to impose levies on automobiles, pharmaceuticals, and other key industries reignited concerns about escalating trade tensions, adding to the overall uncertainty.
Eyes on next Fed moves
At the same time, expectations of further interest rate cuts from the US Federal Reserve helped to support silver prices. With inflation pressures remaining subdued and growth slowing, traders are increasingly pricing in two quarter-point rate cuts this year—one in June and another in September. The possibility of a third cut in December is also growing, as economic indicators suggest a continued softening in the US economy. Lower interest rates typically make precious metals like silver more attractive, as they offer an alternative to low-yielding assets.
Silver remains in demand
As global uncertainties persist, particularly in trade relations and economic growth, silver remains in demand as a hedge against potential market volatility. Investors are closely monitoring these developments, as any escalation in trade disputes or further dovish actions from central banks could drive more capital into precious metals in the coming months.
