Silver Slumps, Fed & Trade Tariffs in Check!
Silver prices traded around US$36.34 per troy ounce on Wednesday, down around 0.25% from the previous session. Despite the daily decline, silver prices are still on an annual uptrend—they've gained around 25–26% since the beginning of the year. This intraday decline was relatively limited, indicating strong support for the long-term trend amidst global market turmoil.
Silver price movements today were influenced by several key factors. One was the market's response to the FOMC minutes, which reaffirmed the Fed's cautious stance on interest rate cuts—depressing expectations for safe-haven assets, including silver. Furthermore, the Trump administration's announcement of new import tariffs, such as 25% sanctions on Japan and South Korea, also added to the volatility of the precious metal. Yesterday's weak (bearish) US economic data created additional pressure, while the weakening US dollar pushed some investor demand back to silver as an alternative investment. Geographically, industrial silver demand—particularly in the electronics and renewable energy sectors—remains solid, providing fundamental support for prices.
Given current developments, the silver price outlook remains positive, despite volatility. Technically, prices are within a strong medium-term support range—around US$36 per ounce—opening the door to a rebound if there are dovish signals from central banks or geopolitical conflicts escalate. Meanwhile, short-term investors need to closely monitor US macroeconomic data and Trump's tariff policies, which could trigger volatility in the precious metals market.
Source: Newsmaker.id
