Silver Trims Losses, Activity Rises After Lunar New Year Holiday
Silver prices held steady above $88 per ounce on Tuesday (February 24th), after briefly dropping below $85 earlier in the session. Trading activity increased as mainland Chinese traders returned to trading after the long Lunar New Year holiday, which typically increases volume and volatility in commodities.
Silver's previous moves were quite aggressive: the metal, along with several other commodities, surged in January, then experienced a sharp correction. This correction was widely attributed to speculative flows, particularly from the Chinese market, making silver more sensitive to short-term position changes.
From a policy perspective, investors assessed the potential for a reduction in the US tariff burden after the US Supreme Court overturned previously imposed "reciprocal" tariffs. Although President Donald Trump subsequently threatened to raise global tariffs from 10% to 15%, the market expected China to still face lower average tariffs on its metal-intensive exports, thus supporting sentiment toward silver.
Meanwhile, geopolitical factors also remained under scrutiny. Market attention is focused on the continuation of US-Iran talks, scheduled to continue Thursday, with Trump reiterating his preference for a negotiated solution but warning of serious consequences if a nuclear deal fails. A combination of post-holiday volumes, tariff dynamics, and geopolitical risks makes silver more likely to move reactively in the short term.
Source: Newsmaker.id
