Silver stabilizes as markets digest trade uncertainty

Silver prices stabilized above $30 per ounce on Tuesday, following a bout of heightened volatility as investors continued to navigate shifting global trade dynamics and their impact on economic and inflation expectations.

Silver stabilizes as markets digest trade uncertainty

The metal came under pressure last week amid broad risk-off sentiment, as fears of a tariff-induced global recession triggered a wave of liquidations across asset classes. However, sentiment has since improved slightly after U.S. President Donald Trump signaled a willingness to engage in trade negotiations with key partners, raising hopes for a potential easing of global trade tensions. U.S. Treasury Secretary Scott Bessent added that nearly 70 countries have reached out to the White House to discuss tariff relief, a move seen as a possible sign of diplomatic progress. This sparked a modest rebound in investor appetite for precious metals, particularly silver, which also benefits from its dual role as both a safe-haven asset and an industrial commodity.

Trump may impose further tariffs on China

Meanwhile, Trump has threatened to impose an additional 50% tariff on Chinese goods unless Beijing lifts its duties on U.S. imports—putting further strain on the outlook for global trade and commodity demand. The ongoing uncertainty has fueled divergent market expectations, with some analysts forecasting increased volatility for silver in the near term as geopolitical risks ebb and flow. Adding to the complexity, silver continues to draw support from inflation-hedging demand, particularly as investors anticipate further monetary easing by major central banks, including the Federal Reserve and the European Central Bank. With real yields remaining low and concerns over a potential global slowdown lingering, silver is expected to remain in focus for both speculative and long-term investors.