"Washington implemented a temporary 10% global tariff, with discussions reportedly underway to raise the rate to 15%. The developments have revived fears of renewed trade confrontation, driving flows toward safe-haven assets."
"Persistent tensions in Eastern Europe and security concerns in Mexico are reinforcing the appeal of precious metals. At the same time, investors are closely watching the third round of US-Iran nuclear negotiations in Geneva, where any breakdown could reignite regional instability."
"However, the metal's gains could see some limitations as monetary policy expectations could remain cautious. In this regard, several Fed members commented that interest rates might have to stay at current levels."
Silver experienced a sharp rally on Wednesday, recovering from previous losses as geopolitical tensions and trade risks drove investors toward safe-haven assets. The U.S. implemented a temporary 10% global tariff with discussions to potentially raise it to 15%, reigniting trade confrontation concerns. Elevated geopolitical risks, including Eastern European tensions, Mexican security concerns, and ongoing U.S.-Iran nuclear negotiations in Geneva, further supported precious metals demand. Silver stands to benefit significantly from additional global uncertainty. However, potential gains face constraints from cautious monetary policy expectations, with Federal Reserve members indicating interest rates may remain at current levels. Silver's price movement will remain sensitive to economic data releases affecting rate expectations, particularly employment and inflation figures.
Read at London Business News | Londonlovesbusiness.com
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