- The price of silver could be seen around 14 years of $ 39.13, registered on Monday.
- The demand for sure shelter increases since Trump has warned about the imposition of “very severe” tariffs on Russia.
- The president of the FED, Powell, said that inflation could increase during the summer due to tariff -related pressures.
The price of silver (XAG/USD) remains firm after registering more than 0.50% losses, quoting around $ 38.10 per Troy ounce during the Asian hours on Tuesday. The price of silver could further advance towards a maximum of 14 years of $ 39.13, reached on Monday, in the middle of a renewed demand for safe refuge.
The operators adopt caution after the last threat of US President Donald Trump to impose “very severe” tariffs on Russia if a peace agreement is not reached within 50 days. In addition, Trump, together with the NATO general secretary, Mark Rutte, confirmed that European allies will buy weapons made in the United States worth bills of dollars, such as Patriot missile systems. These weapons will be transferred to Ukraine in the coming weeks to deal with intensified Russian attacks.
The unpaid silver faced challenges, potentially due to the statements of the president of the Federal Reserve (Fed), Jerome Powell. The president of the Fed, Powell, points out that inflation is expected to increase during the summer, driven by tariff -related pressures, which increases the probability that the Fed can delay the cuts of interest rates until later this year. Meanwhile, concerns about the independence of the Central Bank resurfaced when President Trump renewed his criticism of Powell, insisting that the rates In interest they should be 1% or lower.
In addition, concerns about global trade are relieved since Trump indicated his willingness to participate in more tariff negotiations with the European Union and other key partners. However, operators will probably adopt caution amid the uncertainty surrounding tariff tensions. The US government immediately imposed on Monday a 17% tariff on most of the imports of fresh tomatoes in Mexico after negotiations ended without an agreement to avoid the tariff.
SILVER – FREQUENT QUESTIONS
Silver is a highly negotiated precious metal among investors. Historically, it has been used as a value shelter and an exchange means. Although it is less popular than gold, operators can resort to silver to diversify their investment portfolio, for their intrinsic value or as a possible coverage during periods of high inflation. Investors can buy physical silver, in coins or bullion, or negotiate it through vehicles such as the funds quoted in the stock market, which follow their price in international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can cause the price of silver to shoot due to its safe refuge status, although to a lesser extent than that of gold. As an asset without performance, silver tends to climb with lower interest rates. Its movements also depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (XAG/USD). A strong dollar tends to maintain the price of silver at bay, while a weaker dollar probably drives rising prices. Other factors such as investment demand, mining – silver supply is much more abundant than gold – and recycling rates can also affect prices.
Silver is widely used in the industry, particularly in sectors such as electronics or solar energy, since it has one of the highest electrical conductivities of all metals, surpassing copper and gold. An increase in demand can increase prices, while a decrease tends to reduce them. The dynamics in US economies, China and India can also contribute to price fluctuations: for the US and particularly China, its large industrial sectors use silver in several processes; In India, the demand for consumers for precious metal for jewelry also plays a key role in pricing.
Silver prices tend to follow gold movements. When gold prices go up, silver typically follows the same path, since their status as shelter is similar. The gold/silver ratio, which shows the number of ounces of silver necessary to match the value of an ounce of gold, can help determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that silver is undervalued, or that gold is overvalued. On the contrary, a low ratio could suggest that gold is undervalued in relation to silver.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
