Silver Extends Advance on Weaker Dollar and Trade-War Worries
Silver climbed to a one-week high as concerns about a global trade war fanned haven demand and the dollar weakened. Gold also advanced.
Silver gained as much as 1.9%, rising for a third day. A gauge of the dollar hit the lowest in about three months, as the euro strengthened amid Germany’s plan to boost spending and loosen borrowing restrictions. A weaker greenback benefits precious metals, making them more affordable for buyers in other currencies.
Traders are also keeping a close eye on how trade tariffs affect the global economy. President Donald Trump on Tuesday warned Americans that there could be economic discomfort as a result of levies as he defended his policies to remake the US economy. Any pickup in inflation and hit to global growth could bolster the appeal of gold and silver as a store of value.
The US put 25% tariffs on most goods from Canada and Mexico and doubled tariffs on China to 20%. Still, Commerce Secretary Howard Lutnick said Wednesday Trump is set to announce changes to the tariffs on Canada and Mexico he slapped on earlier this week, with potential relief for automobiles and other sectors.
Spot silver rose 1.8% to $32.57 an ounce as of 11:25 a.m. in New York. The Bloomberg Dollar Spot Index fell 0.9%. Gold and platinum advanced, while palladium fell.
Source: Bloomberg
