- The price of silver rose to US President Donald Trump's latest tariff threat increased the demand for safe Haven assets.
- President Trump plans to introduce pharmaceutical tariffs in the next two weeks.
- Unchanged interest rates are expected from the Federal Reserve on Wednesday.
The price of silver (XAG/USD) will extend the benefit of the second consecutive session, trading around $ 33.10 per troy ounces on Tuesday. Prices for precious metals, including silver, rose to President Donald Trump's new tariffs for safe assets.
President Trump announced the plan to direct a US trade representative and the Trade Department to start the 100% tariff for films produced abroad. On Monday, he also announced that he intended to introduce pharmaceuticals over the next two weeks.
The dollar-called silver could be restrained, as a higher US dollar (USD) can make valuable metal cheaper for foreign currency buyers. Greenback will strengthen before the Federal Reserve (FED) monetary policy announcement on Wednesday.
Although Fed is expected to receive interest rates unchanged, the markets are closely monitored by Jerome Powell's comments, especially in the midst of tariff uncertainty and gathering pressure to cut interest rates.
On Monday, the Trade Treasury Secretary, Scott Bessent, announced that the US is “very close to some transactions”, reflecting Trump's weekend comments that refer to progress in trade negotiations. However, Trump ruled out this week's meeting with Chinese President Xi Jinping. The Chinese Ministry of Commerce announced on Friday that it would review the US proposal to continue the talks.
Silver
Silver is a precious metal with high trading in investors. It is historically used as a means of value and exchange. Although traders are less popular, traders may turn to silver to diversify their investment portfolio, its internal value or potential risking during the high inflation period. Investors can buy physical silver in coins or bars or trade through vehicles such as exchange funds that monitor its price in international markets.
Silver prices can move due to a variety of factors. Geopolitical instability or fears of a deep recession may escalate the price of silver due to its safe status, albeit to a lesser extent than gold. Silver tends to rise at lower interest rates as a sawless property. Its moves also depend on how the US dollar (USD) behaves when assets are valued (XAG/USD). A strong dollar tends to keep the silver price in quiet, while the weaker dollar is likely to push prices. Other factors, such as investment demand, mining offer – there is much more silver than gold and recycling rate can also affect prices.
Silver is widely used in industry, especially in sectors such as electronics or solar energy, as it has the highest electrical conductivity of all metals – more than copper and gold. Increased demand can increase prices while the decline tends to lower them. Dynamics in the US, China and India can also contribute to price changes: for the United States and especially China, their large industrial sectors use silver in various processes; In India, consumer demand for jewelery precious metal also plays a key role in determining prices.
Silver prices tend to follow the golt course. When gold prices rise, silver usually follows an example, as their status as safe worsening assets are similar. The ratio of gold/silver, which shows the number of silver units to equalize one ounce value, can help determine the relative evaluation of both metals. Some investors may consider a high relationship as an indicator that silver is underestimated or gold is overestimated. On the contrary, a low ratio may indicate that gold is underestimated in silver.
