Silver has risen to a near five-month peak of $33.40 per troy ounce, extending gains for a third straight trading day.
The metal is drawing increased safe-haven interest as global trade tensions intensify following the introduction of new U.S. steel and aluminum tariffs and comments from President Trump describing the economy as being in a “transition period.” Such uncertainty often pushes investors toward precious metals like silver.
Lower-than-expected U.S. inflation data for February has also heightened expectations that the Federal Reserve may cut interest rates sooner than previously anticipated. Because silver does not yield interest, a weakening U.S. dollar and the prospect of easier monetary policy make it more appealing to investors, adding to the upward pressure on prices.
Market participants are watching for further economic releases and central bank signals that could influence the dollar and real interest rates, both key drivers for precious metals. If trade tensions persist and inflation remains subdued, silver could continue to attract buying as a hedge against geopolitical and currency risks.
Volatility around tariffs and policy comments means price swings may remain pronounced in the near term. Traders and investors should monitor developments in trade negotiations, upcoming economic data, and statements from Federal Reserve officials, which will likely shape silver’s path in the weeks ahead.