Silver prices climbed to around $33.20 per ounce on Thursday, rebounding strongly from the previous session’s losses and diverging from a retreat in gold prices, as renewed investor optimism lifted demand for industrial and hybrid safe-haven assets.
Silver rises amid US tariff ruling
The move came in response to a U.S. federal court ruling that blocked President Donald Trump’s use of sweeping reciprocal tariffs, which had contributed to prolonged trade uncertainty and volatility in global commodity markets. The U.S. Court of International Trade found that Trump had exceeded his legal authority in imposing the tariffs, ordering the measures to be vacated and permanently enjoined. While the Trump administration is expected to appeal the ruling, the decision marked a notable blow to the former president’s protectionist trade strategy and was seen by markets as a potential turning point toward more stable international trade relations.
Silver, which straddles both industrial and monetary roles, benefited disproportionately from the ruling. The prospect of fewer trade restrictions and a healthier global manufacturing environment bodes well for industrial demand, particularly in electronics, solar panels, and automotive applications—key sectors that rely heavily on silver. At the same time, the metal maintained some of its safe-haven appeal amid lingering macroeconomic uncertainties.
Fed minutes effects on outlook
Meanwhile, minutes from the Federal Reserve’s May meeting added another layer of complexity to the outlook. Fed policymakers signaled a cautious, data-dependent stance, highlighting the need to assess the cumulative impact of recent policy measures—including trade-related developments—on inflation and growth. Although interest rates were left unchanged, officials expressed growing concern over the persistence of inflationary pressures while also acknowledging the risk of slowing labor market momentum. This dual-risk scenario has made investors more selective in their exposure to precious metals, favoring silver’s mixed-use profile over gold, which is more purely a monetary hedge.
Additionally, speculative interest in silver has remained elevated, with traders eyeing potential supply constraints amid increased industrial demand. Some analysts also noted that central bank buying patterns and retail investment flows have shown greater interest in silver as a strategic hedge, particularly in the face of continued geopolitical and policy uncertainty.
Overall, silver's gains reflect a broader recalibration in the commodities space, as investors weigh improving trade conditions against the backdrop of complex monetary dynamics and evolving inflation risks.
