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Additionally, concerns over economic growth due to US trade policies have fueled demand for safe-haven assets. President Donald Trump’s tariffs on Canadian, Mexican, and Chinese goods have raised fears of slower global trade, pushing investors toward gold.
Silver Climbs Amid Inflation and Geopolitical Uncertainty
Silver (XAG/USD) also saw gains, trading around $31.23, after reaching an intra-day high of $31.41. The rally was driven by a weaker dollar and increasing safe-haven demand as geopolitical risks remain elevated.
The US Bureau of Economic Analysis reported that the Personal Consumption Expenditures (PCE) Price Index rose 0.3% in January, while core PCE inflation slowed to 2.6% from 2.9% in December. The report, combined with a 0.2% drop in consumer spending, the largest decline in four years, has increased concerns about slowing economic growth—a bullish signal for both gold and silver.
Gold & Silver React to Trade Tensions – What’s Next?
Markets are bracing for further uncertainty as US trade policies escalate. Trump’s plan to increase tariffs on Canadian and Mexican imports starting Tuesday, on top of the existing 10% duties on Chinese goods, has heightened trade war fears.
Meanwhile, China is considering retaliatory measures, potentially targeting US agricultural and food products. The rising uncertainty continues to push investors toward precious metals, reinforcing gold and silver’s safe-haven appeal.
Investors are now closely watching US economic reports, including the ISM Manufacturing PMI and the Nonfarm Payrolls report, which could influence the dollar, interest rate expectations, and precious metal prices in the coming days.
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