Silver Price Surges Above $31.50 Amid Global Trade Concerns by Amit Gupta, Kedia Advisory
Silver price continues to gain momentum, trading near two-month highs around $31.60 per ounce. The metal is benefiting from concerns over US trade policies, with the postponement of tariffs on Mexican and Canadian goods temporarily easing market anxiety. Dovish signals from major central banks, including the Bank of Canada and the European Central Bank, are also supporting non-interest-bearing assets like silver. Economic data showing growth in US manufacturing activity further supports silver’s industrial appeal. Additionally, supply deficits are expected to persist through 2025, driven by strong industrial demand and retail investment.
Key Highlights
* Silver price holds gains above $31.50, nearing two-month highs.
* US trade policies, including tariff postponements, create market uncertainty.
* Dovish signals from major central banks support silver’s rise.
* Strong US Manufacturing PMI data strengthens silver’s industrial outlook.
* The Silver Institute projects a fifth consecutive year of supply deficits in 2025.
Silver price continues its upward momentum, trading near two-month highs at $31.60 per troy ounce during Asian trading hours on Tuesday. The precious metal is benefitting from safe-haven demand amid uncertainties surrounding US trade policies. On Monday, US President Donald Trump suspended tariffs on Mexican and Canadian goods, alleviating concerns in the global markets. These tariffs, initially imposed on Sunday, have been postponed for at least 30 days, with China remaining the sole country facing new levies.
Silver, is also seeing support from dovish actions by central banks. The Bank of Canada (BoC) and Sweden's Riksbank have cut interest rates, while the European Central Bank (ECB) recently lowered its Deposit Facility Rate. In addition, both the Reserve Bank of India (RBI) and the People’s Bank of China (PBoC) have hinted at potential rate cuts. This dovish stance, coupled with expectations for the US Federal Reserve to implement two rate cuts this year, adds to silver’s appeal.
Economic data further supports silver’s bullish outlook. The US Manufacturing PMI for January rose to 50.9, indicating stronger-than-expected growth in factory activity, which is positive for silver as an industrial metal, particularly in electrification technologies. Furthermore, the Silver Institute’s forecast of a market deficit in 2025 adds further upward pressure on prices due to sustained demand in industrial applications and retail investment.
Finally
Silver remains a strong investment, with ongoing trade uncertainties, dovish central bank policies, and market deficits supporting its price. Key levels to watch are $31.50 and potential resistance near $32.
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