Silver gains as dollar weakens amid trade uncertainty

Silver prices rose over 1% to around $32.40 per ounce on Monday, rebounding from last week’s losses as the U.S. dollar weakened and investor appetite for safe-haven assets regained strength amid ongoing geopolitical and economic uncertainty.

Silver gains as dollar weakens amid trade uncertainty

The softening of the greenback provided a tailwind for dollar-denominated commodities, making silver more attractive to holders of other currencies. The move came as concerns over U.S.-China trade relations resurfaced, following comments from President Donald Trump that he currently has no plans to speak with Chinese President Xi Jinping, although he left the door open for tariff reductions on Chinese imports in an attempt to revive trade momentum and soothe market anxieties. Adding to the cautiously optimistic sentiment, Chinese authorities suggested a willingness to re-engage in trade talks with the United States, though they firmly reiterated that all unilateral U.S. tariffs must be lifted as a precondition for meaningful negotiations. The mixed signals from both sides have contributed to uncertainty about the direction and pace of global trade recovery, reinforcing demand for defensive assets like silver, which also benefits from its dual role as both a monetary metal and an industrial commodity.

Focus on Fed and trade war developments

Investors are also closely watching the Federal Reserve’s upcoming policy meeting, where the central bank is widely expected to hold interest rates steady. However, persistent trade-related risks, along with recent signs of slowing economic momentum, are likely to influence the Fed’s tone and forward guidance. Any dovish signals or concerns about external shocks could further support non-yielding assets like silver. Meanwhile, speculative interest in precious metals has remained elevated, with ETF inflows into silver-backed funds rising steadily in recent weeks, reflecting growing investor hedging activity. In the broader context, silver continues to track gains in gold, though it has also found support from its industrial applications, particularly in electronics and solar energy. As global decarbonization efforts intensify, the long-term demand outlook for silver remains robust. Still, short-term price action will likely be driven by macroeconomic developments, central bank policy signals, and evolving headlines around U.S.-China trade relations.