Silver gained 1% to approach $33 per ounce on Wednesday, recovering from losses in the previous session and benefiting from a broader rally in commodities driven by signs of easing US-China trade tensions.
Silver rises amid broad rally in commodities
The white metal diverged from gold, which pulled back from its record highs amid a cooling in demand for traditional safe-haven assets. Instead, silver’s unique position as both a precious and industrial metal allowed it to capitalize on improving macroeconomic sentiment, making it more sensitive to broader market dynamics.
Investor optimism surged following comments from US President Donald Trump, who downplayed the possibility of steep future tariffs on Chinese imports. Trump stated that tariffs "won’t be anywhere near as high as 145%," offering reassurance to markets already dealing with the ongoing trade war. Although he clarified that tariffs wouldn’t be eliminated entirely, his remarks sparked a sense of relief, boosting market sentiment across asset classes.
In addition to the positive trade outlook, silver found further support from growing confidence in the stability of US monetary policy. Trump’s reaffirmation that he had no intention of removing Federal Reserve Chair Jerome Powell alleviated concerns about political interference in central bank operations. This eased fears over the potential for erratic changes in US monetary policy, providing some stability to global markets.
Investors flock to safe-haven assets
As silver gained traction, the metal continued to be favored by investors seeking exposure to both its safe-haven properties and its industrial uses. With a wide array of industries relying on silver, especially in electronics and renewable energy sectors, silver’s role as a key industrial commodity gives it an additional layer of demand, especially as global economic conditions show signs of stabilizing. Silver’s ability to benefit from both risk-off sentiment and a recovering global economy has made it one of the most dynamic assets in the commodities market, attracting attention from both investors and industrial users alike.
Looking ahead, as US-China relations show signs of thawing and economic data shows potential improvement, silver could remain well-positioned to maintain its momentum, driven by its unique characteristics in the precious metals and industrial markets.
