Tariffs & Interest Rates Boost Silver
Silver prices (XAG/USD) continued to strengthen and were trading around $38.05 on Thursday morning European time. This marked the fifth consecutive day that silver has been in positive territory, driven by a weakening US dollar and increased demand for safe-haven assets.
Market sentiment was also influenced by US President Donald Trump's statement hinting at the possibility of additional tariffs on China and Japan. He had previously announced a 25% tariff on Indian goods related to oil purchases from Russia. This trade uncertainty has prompted investors to turn to safe-haven assets like silver.
On the monetary front, expectations of an interest rate cut by the Federal Reserve strengthened after last week's weaker-than-expected US jobs data. Lower interest rates typically boost silver prices because they reduce the opportunity cost of holding non-yielding assets like precious metals.
The market is also awaiting weekly US jobless claims data, which is expected to rise to 221,000. If this data surprises with a stronger-than-expected result, the US dollar could strengthen again and put pressure on silver prices. However, for now, market sentiment still supports the upward trend in the white metal. (ayu)
Source: Newsmaker.id
