Silver Gains on Trade Tensions, Rate Cut Hopes
Silver climbed over 0.8% to $33.20 per ounce on Wednesday, as investors turned to safe-haven assets amid escalating trade tensions and cooling U.S. inflation.
Expectations of Federal Reserve rate cuts further fueled demand for precious metals, with the prospect of a lower interest rate environment adding to silver’s appeal. The latest U.S. Consumer Price Index (CPI) report showed inflation rising 0.2% in February, easing from January’s 0.5% increase. This sign of slowing inflation strengthened the outlook for Fed rate cuts later this year.
Traders are now looking ahead to U.S. Producer Price Index (PPI) data and weekly jobless claims for further insight into the economic landscape.
Meanwhile, trade tensions escalated as President Donald Trump imposed higher tariffs on steel and aluminum imports, fueling uncertainty and increasing silver’s appeal as a hedge.
Source : Trading Economics