Silver Cuts Losses After 25% Tariff Announcement
Silver prices remained under pressure on Monday, even as the market digested the impact of new tariffs announced by US President Donald Trump on Japan and South Korea. The precious metal weakened slightly, but then cut its losses after increasing demand for safe havens amid uncertainty surrounding Trump's tariffs. Although not as volatile as gold, silver has shown its own resilience as a hedge against inflationary pressures, recession risks, and worsening global trade relations.
The main driving factor today was Trump's decision to impose a 25% tariff on various products from Japan and South Korea starting next August 1. This policy immediately rocked the global stock market and encouraged investors to switch to assets considered safer such as precious metals. Silver, which is not only an industrial commodity but also seen as an alternative safe haven, received a boost in demand, although not as much as gold. However, the strengthening of the US dollar following the announcement of the tariffs held back further increases in silver prices, as the metal became more expensive for holders of other currencies.
On the technical side, silver is trading above the support level of $29.80 with the closest resistance at around $30.40. Trading volume was moderate, indicating that market players are still waiting for the release of economic data this week such as the employment report and the Fed minutes.
Source: Newsmaker.id (Arl)
