Silver Hovers Near 2-Month Highs
Silver traded around $31.5 per ounce on Tuesday, hovering near its highest level since early December as an escalating trade war between the US and China boosted demand for safe-haven assets. China announced retaliatory tariffs after President Donald Trump’s 10% tariffs on all goods imported from China took effect.
Earlier, Trump agreed to hold off imposing 25% tariffs on Canada and Mexico for a month after the nations agreed to take tougher measures to address migration and drug trafficking. Meanwhile, strong manufacturing data from the ISM indicated some long-awaited traction for US factory activity, supporting the outlook for silver as an industrial demand, particularly in electrification technologies.
On the supply front, the Silver Institute recently forecasted a fifth consecutive year of significant market deficits for the metal in 2025, driven by strong industrial demand and retail investment. These factors are expected to outweigh weaker consumption in jewelry and silverware.
Source : Trading Economics