Silver Steady At $31.50 Amid Escalating Trade Tensions
Silver (XAG/USD) continued its uptrend for the third straight session, trading around $31.30 during the Asian session on Friday (4/11). The precious metal gained traction as the US Dollar weakened, with the US Dollar Index (DXY) dropping to around 100.20 at the time of writing.
Investors’ demand for safe-haven assets such as Silver was also boosted by escalating US-China trade tensions. On Thursday, the US announced a sharp increase in tariffs on Chinese imports—raising them to 145% with the new levy at 125% on top of the existing 20% tariffs. The move overshadowed US President Donald Trump’s 90-day pause on higher tariffs for other countries, raising concerns over the potential economic impact of the US-China standoff.
Adding to Silver’s appeal, US inflation data came in lower than expected. The March Consumer Price Index (CPI) showed headline inflation fell to 2.4% year-over-year—below the 2.6% forecast and down from 2.8% in February. Core CPI, which excludes food and energy, rose just 2.8%, also below forecast. On a monthly basis, headline CPI fell 0.1%, while core CPI edged up 0.1%. This has led markets to price in a potential Fed rate cut starting in June, with a full percentage point cut possible by the end of the year.
Meanwhile, the latest Federal Open Market Committee (FOMC) minutes showed widespread concern among policymakers over the challenge of balancing inflation risks with slowing economic growth. Dallas Fed President Lorie Logan warned that unexpected trade moves could fuel job losses and inflation, potentially forcing the Fed to go on the defensive. Weekly jobless claims also edged up to 223,000.
Source: FXStreet
