Silver prices surged past $34.30 per ounce on Monday, approaching 13-year highs, as escalating global trade tensions and economic uncertainty fueled demand for safe-haven assets.
Silver rises on tariff fears, nears 13-year high
Investors sought refuge in precious metals amid growing fears that President Donald Trump’s aggressive tariff policies could exacerbate inflation and slow global growth. Over the weekend, Trump reaffirmed his commitment to imposing reciprocal tariffs on all countries, reportedly urging his advisers to take an even tougher stance on trade. Markets are increasingly concerned that these measures will prompt retaliation from major trading partners, further disrupting global supply chains and heightening inflationary pressures.
Fed keeps on assessing the inflation outlook
Meanwhile, Federal Reserve officials continue to assess the inflation outlook. San Francisco Fed President Mary Daly commented that Friday’s inflation report had weakened her confidence in the expectation that two interest rate cuts in 2025 remain a reasonable projection. With inflationary risks mounting, traders are recalibrating their expectations for monetary easing, leading to increased volatility in financial markets.
Additionally, silver is benefiting from strong industrial demand, particularly as expectations grow for sustained expansion in renewable energy and electronics manufacturing. The metal's dual role as both a safe-haven asset and an industrial commodity has helped drive its rally, with analysts watching for further price momentum amid ongoing macroeconomic uncertainty.
