Silver Holds, Safe Havens Still Supporting
Silver prices (XAG/USD) paused a four-day rally and held steady around $87.50 per troy ounce during Tuesday's Asian session. Although momentum has waned, silver still has the potential to strengthen further as safe haven demand remains strong amid global trade uncertainty and geopolitical risks.
From a policy perspective, a Wall Street Journal report stated that the Trump administration is considering national security tariffs on six industries through Section 232 of the Trade Expansion Act of 1962. This plan comes after a Supreme Court ruling overturned several previous tariffs. The Section 232 policy is said to be separate from the 15% global tariffs announced by Trump, but it still adds a layer of uncertainty as markets doubt the sustainability of these measures, especially if they are not extended beyond the 150-day deadline.
Reactions from trading partners are beginning to be seen. The European Union has signaled it could delay ratification of a trade deal with the US, while India-US trade talks to finalize an interim pact have also been postponed as Washington restructures its tariff strategy. This situation maintains risk-off sentiment, which typically supports precious metals.
Geopolitically, tensions in the Middle East remain high after Trump hinted at a possible attack on Iran. However, Oman confirmed that the third round of US-Iran talks will proceed this week in Geneva, somewhat alleviating fears of a prolonged conflict. This combination of "tariffs + geopolitics" keeps silver in demand as a defensive asset, although its movements are prone to volatility following headlines. (asd)
Source: Newsmaker.id
