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Gold prices are higher and remain within striking distance of their all-time high, supported by expectations of Federal Reserve rate cuts and rising global trade tensions. A bullish structure remains intact, with key support levels preventing significant downside pressure.
Macquarie has raised its gold price forecast to $3,150 for the third quarter, with a possible peak of $3,500 later this year. Given silver’s dual role as an investment asset and industrial commodity, its price often follows gold’s direction, particularly in periods of monetary policy uncertainty.
Tariff Uncertainty Could Drive Volatility
Trade policy developments remain a key wildcard for silver prices. President Donald Trump has reaffirmed plans for additional tariffs on China, Canada, and the EU, increasing concerns over higher import costs and potential retaliatory actions. If tariffs escalate, inflation could pick up again, potentially delaying Fed rate cuts and strengthening the U.S. dollar.
Higher tariffs could also impact industrial demand for silver, particularly in sectors like electronics and solar energy, where silver plays a critical role. Traders will be closely watching how trade developments influence inflation trends and Fed policy projections in the coming weeks.
Market Outlook: Silver Awaits Key Catalysts
Silver remains in a consolidation phase, with a breakout above $33.39 needed to confirm a new leg higher. The outcome of the PPI report will be crucial—softer inflation data could support silver by reinforcing rate-cut expectations, while stronger inflation could pressure prices in the short term. Additionally, trade tensions remain a key risk factor that could inject volatility into silver’s outlook.
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