US Supreme Court Tariff Ruling Shakes Dollar, Silver Soars
Silver prices surged sharply on Friday (February 20th) and traded near $85 per ounce, driven by a weaker US dollar after the Supreme Court's ruling against some global tariffs increased the precious metal's appeal as a safe haven asset. In addition to the risk-reward factor, silver also received support from industrial demand, which made its movements respond more sharply than gold when sentiment turned positive.
Pressure on the dollar emerged after a legal setback for the White House raised new uncertainty regarding the direction of tariff policy. At the same time, escalating US-Iran tensions revived risk premiums in the market, and higher silver volatility further impacted prices.
From a macro perspective, market participants also weighed a mix of US data: weak Q4 GDP growth of 1.4% compared to core inflation that remained stubbornly sticky at around 3%. This complicates projections of the Fed's interest rate path, especially as the FOMC minutes showed divergent views among policymakers.
There was a period of thinner trading due to the Lunar New Year holiday, especially after the strong speculative movements of the past. However, as Asian markets began to reactivate, recovered participation added momentum to silver's rebound.
Technically, silver is beginning to establish a more stable footing above the $80 area, balancing its role as a crisis hedge with industrial needs—particularly for sectors like solar energy and AI-related technology supply chains.
Against a backdrop of policy uncertainty, a slowing economy, and lingering geopolitical turmoil, silver is now on track for a strong weekly gain. Market focus will next be on the direction of the dollar, further inflation readings, and developments in geopolitical tensions that could potentially keep volatility high.
Source: Newsmaker.id
