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Former U.S. President Donald Trump’s 25% tariffs on steel and aluminum imports have raised fears of a broader trade war, which could, in turn, revive safe-haven demand for gold.
Silver Gains on Industrial Demand, But Faces Dollar Strength
Silver (XAG/USD) is holding steady at $31.82, with an intra-day high of $31.94 as industrial demand expectations provide some support.
Unlike gold, silver benefits from manufacturing and economic expansion, particularly in key global markets. However, the strong U.S. dollar and Powell’s remarks are limiting silver’s upside.
If inflation data shows persistent price pressures, silver could face additional headwinds. However, easing inflation could support a recovery, reinforcing silver’s position as a dual-purpose asset—valued both as a safe haven and for its industrial applications.
Investors Await Inflation Data for Fed Policy Clues
With gold under pressure and silver struggling to break higher, traders are focused on the upcoming U.S. consumer inflation report. Analysts expect this data to heavily influence the Federal Reserve’s next policy decision.
If inflation remains high, the dollar could strengthen further, driving gold and silver prices lower. Conversely, softer inflation could spark renewed interest in precious metals.
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