Silver steady as markets digest US tariff news

Silver prices held firm around $36.80 per ounce on Tuesday, hovering near 13-year highs as investors weighed the implications of recent US trade policy shifts and shifting interest rate expectations.

The precious metal, often viewed as both an industrial input and a safe-haven asset, continues to benefit from geopolitical uncertainty and strong physical demand, particularly from emerging markets and the renewable energy sector.

Markets responded cautiously to President Donald Trump's announcement of updated tariff rates on 14 countries that have not secured trade deals with Washington. The new measures include 25% levies on imports from major exporters such as Japan and South Korea, heightening concerns over supply chain disruptions and the potential for retaliatory trade actions. Trump also signed an executive order extending the reciprocal tariff deadline to August 1 from July 9, offering a brief window for further negotiations but keeping pressure on trade partners.

In a more provocative move, the president warned of a potential 10% tariff on nations that align with what he described as the “Anti-American policies of BRICS,” as the bloc held a high-stakes summit in Brazil aimed at deepening economic ties and exploring alternatives to the US-led global order.

In addition to trade-related uncertainty, silver prices were supported by a shift in monetary policy sentiment. A stronger-than-expected US jobs report for June—highlighting continued resilience in the labor market—has dampened expectations for near-term interest rate cuts from the Federal Reserve.

Market participants have largely priced out the likelihood of a July rate cut, pushing back bets on easing into the fall. Higher interest rates typically weigh on non-yielding assets like silver, but the metal has remained resilient, supported by its dual role in industry and as a hedge against inflation and geopolitical risk.

Looking ahead, analysts expect silver to remain sensitive to developments in US trade policy, central bank guidance, and global industrial demand—particularly from the solar and electronics sectors, where silver plays a key role. Any escalation in trade tensions or dovish shift in Fed rhetoric could provide additional upside for the metal in the near term.