Silver remained above $39 per ounce on Wednesday, holding near its strongest levels since 2011 as a softer U.S. dollar and falling Treasury yields increased the appeal of precious metals.
Market participants were also weighing President Trump’s announcement of a new 15% tariff agreement with Japan alongside expectations that the temporary U.S.–China tariff truce will be extended ahead of upcoming talks in Stockholm. These trade developments influenced risk sentiment and demand for safe-haven assets.
At the same time, renewed criticism from President Trump toward Federal Reserve Chair Jerome Powell — accusing him of keeping interest rates too high and predicting Powell’s exit within eight months — added further uncertainty about the future path of U.S. monetary policy. That uncertainty has supported interest in non-yielding assets such as silver.
Analysts noted that lower real yields tend to lift precious metals prices, and with both the dollar retreating and Treasury yields on the decline, silver has benefited. Traders are closely watching how trade negotiations and central bank rhetoric will affect inflation expectations and investor appetite for commodities.
Short-term price drivers include currency movements, shifts in bond markets and geopolitical developments, while longer-term trends will depend on economic data, Fed decisions and the progress of international trade negotiations. For now, silver’s proximity to multi-year highs reflects a combination of weaker yields, a softer dollar and persistent uncertainty surrounding trade and monetary policy.