Silver Holds Above $29.50 Amid Tariff Uncertainty
Silver (XAG/USD) recovered from a dip to around $29.85 during Asian trading hours on Wednesday (4/9). Analysts believe that the recent correction could be a preparation for a strong rebound amid rising trade tensions and recession fears. Traders are gearing up for the FOMC Minutes, due out on Wednesday.
US President Donald Trump said late Tuesday that he is not considering abandoning his plan to impose broad additional tariffs on dozens of countries despite contact from trading partners seeking to avoid the levies. However, he hinted that he may be open to some negotiations.
Trump’s remarks came after his top officials signaled the administration’s willingness to engage with trading partners, with a 10% tariff already in effect and targeted retaliatory import tariffs scheduled for Wednesday. The uncertainty has fueled global market volatility and boosted safe-haven demand, supporting Silver prices.
In addition, industrial demand, especially from emerging industries such as electric vehicles and solar energy, is providing support for the white metal. Gains are also expected in the consumer electronics market, as the development of artificial intelligence systems will continue to enhance product offerings.
Traders will be watching the FOMC Meeting Minutes on Wednesday. The report could provide insight into the Federal Reserve’s (Fed) stance on monetary policy. Any aggressive statements from Fed officials could lift the greenback and weigh on USD-denominated commodity prices in the near term.
Source: FXSreet
