Silver slips on stronger dollar, yields

Silver prices slipped to around $36.50 per ounce on Wednesday, registering their third consecutive daily decline as a stronger US dollar and rising Treasury yields continued to weigh on the precious metals complex. The downtrend reflects mounting investor unease in response to shifting monetary expectations and intensifying trade tensions, which have reignited volatility across commodities and global markets.

The latest leg lower in silver came amid a fresh bout of US trade policy uncertainty, following a series of aggressive tariff measures announced by President Donald Trump. Markets reacted sharply after Trump ruled out any extension or delay to newly imposed tariffs on goods from 14 countries, which are set to take effect on August 1.

The firm stance signaled a renewed willingness by the administration to use tariffs as a central economic tool, further exacerbating concerns over global supply chain disruptions and retaliatory actions from affected nations.

Adding to the uncertainty, Trump also introduced a 50% tariff on copper imports, a move that has broader implications for industrial metals markets, including silver, which is heavily used in electronics and solar manufacturing.

Moreover, the administration announced plans to impose tariffs of up to 200% on pharmaceutical imports, though implementation of those levies will be delayed by 12 to 18 months, ostensibly to allow domestic and international pharmaceutical companies time to adjust their supply chains and production networks.

Meanwhile, monetary policy developments also pressured silver prices, as market participants turned their attention to the upcoming Federal Open Market Committee (FOMC) meeting minutes for deeper insight into the Federal Reserve’s policy trajectory.

The release comes on the heels of a stronger-than-expected US jobs report for June, which showed continued resilience in labor market conditions and a slight uptick in wage growth—data that has dampened investor expectations for an imminent rate cut.

As a result, both the US dollar and Treasury yields rose, bolstered by the perception that the Fed may choose to delay monetary easing until later in the year. A stronger dollar makes silver and other dollar-denominated commodities more expensive for foreign buyers, while higher yields reduce the appeal of non-interest-bearing assets like precious metals.

While the near-term outlook for silver appears clouded by macroeconomic headwinds, some analysts note that underlying support could re-emerge if trade disruptions intensify or if inflationary pressures resurface later in the year. In particular, silver’s dual role as both a monetary and industrial metal may position it as a hedge against volatility stemming from policy missteps or supply shocks in the energy and manufacturing sectors.

Looking ahead, markets will closely monitor not only the FOMC minutes but also upcoming US inflation data, global manufacturing surveys, and geopolitical headlines, all of which could influence interest rate expectations and safe-haven demand.

Any dovish shift from the Fed or signs of escalating trade retaliation could quickly reignite interest in silver and other precious metals.

In summary, silver’s recent slide reflects a convergence of rising real yields, dollar strength, and policy uncertainty, underscoring the market’s sensitivity to both monetary and geopolitical developments as investors recalibrate expectations for the remainder of 2025.