Silver (XAG/USD) continued its upward momentum for a second consecutive session on Tuesday, trading around $33.10 per troy ounce during Asian hours. The precious metal’s price surge was largely driven by a spike in demand for safe-haven assets, following President Donald Trump’s latest tariff threat.
On Monday, President Trump revealed plans to direct the US Trade Representative and the Commerce Department to impose a 100% tariff on films produced overseas. Additionally, he signaled intentions to introduce tariffs on pharmaceuticals within the next two weeks, further fueling market uncertainty.
While Silver saw significant price gains, the outlook for further upside remains tempered. A stronger US Dollar (USD) could potentially limit Silver’s price growth, as a higher Greenback makes the dollar-denominated metal more expensive for foreign buyers. The US Dollar’s strength is also tied to expectations surrounding the Federal Reserve’s (Fed) upcoming monetary policy decision.
The Fed is widely anticipated to maintain its current interest rates, but market participants are closely monitoring Chairman Jerome Powell’s comments, especially in light of tariff-related uncertainties and growing calls from President Trump for rate cuts.
On the trade front, Treasury Secretary Scott Bessent stated that the US is “very close to some deals,” echoing Trump’s remarks over the weekend about progress in trade negotiations. However, Trump also confirmed that a meeting with Chinese President Xi Jinping would not take place this week. China’s Commerce Ministry, meanwhile, indicated on Friday that it is reviewing the US proposal to resume talks.
