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Silver Price News: Silver Rises to $33 As Markets Eye Trade War Latest
Silver prices rebounded on Tuesday, rising in tandem with gold, as the US dollar weakened in response to a deepening round of US-led trade tariffs. Prices rose as high as $33.07 an ounce on Tuesday, up from around $32.07 an ounce in late trades on Monday.
Precious metals react to trade tariff uncertainty:
Both gold and silver took support from uncertainty on Tuesday linked to the latest developments in the trade war between America and some of its major trading partners. US President Donald Trump threatened to double tariffs on imports of Canadian steel and aluminium, only to hint at a potential reversal of that decision later on Tuesday after Ontario’s Premier Doug Ford suspended his own tariff plans on electricity exports to certain northern US states.
London silver volumes fall again in February:
On the supply side, the amount of physical silver held in London vaults fell by 4.5% in February to 22,462 tonnes, the London Bullion Market Association said in a report: London Vault Data.
The sharp drop in silver in February marks the fourth consecutive drop in volumes in London vaults, and follows an even larger drop in January. The falling volumes of silver held in London are considered to reflect movements to the US, which have come amid uncertainty over US tariffs and their wider impacts. Read More
Gold Price News: Gold Rebounds as US Doubles Tariffs on Canadian Metals
Gold prices rose on Tuesday, recapturing the previous day’s losses, as the markets reacted to uncertainty created by the latest hike in US tariffs on Canada. Prices climbed as high as $2,922 an ounce on Tuesday, up from around $2,885 an ounce in late trades on Monday.
Trade War Deepens:
Tuesday’s rebound for gold came as the US dollar fell to a four-month low against the Euro while interest in safe haven assets increased amid an escalating US-led global trade war.
US President Donald Trump on Tuesday said he would double the tariffs on imports of Canadian steel and aluminium to 50%, in response to Canada saying it would impose a 25% surcharge on electricity exported to the US. New Canadian Prime Minister Mark Carney on Monday said Canada would fight back against the US tariffs until America ‘shows respect’.
Gold reacted positively to the latest round of trade jitters, while stock market indices, including the S&P 500 index, fell sharply, adding to a three-week slump.
The deepening trade war is bullish for gold, which typically benefits when traders sell out of other assets.
In the latest twist, Canada’s province of Ontario late on Tuesday backed down from its threatened electricity tariffs, prompting President Trump to hint that he might hold off from doubling tariffs on Canadian goods. Read More
Gold’s beating Bitcoin but you should hold both in your portfolio says Bytetree’s Charlie Morris
There has been a sharp reversal of fortunes between gold and Bitcoin, but according to one fund manager, investors looking for portfolio diversification should continue to invest in both assets.
The new Trump administration has been extremely supportive of the cryptocurrency space. However, even the President's best efforts have not been enough to push prices back to their record highs set at the start of the new year.
Last week, Trump signed an executive order creating a strategic Bitcoin reserve, but the announcement underwhelmed market expectations as the reserve will be made with BTC it already holds.
Bitcoin is currently consolidating around $83,000 a token, down 24% from its all-time high from Jan. 20. The digital currency has given up nearly three-quarters of its gains since November. Meanwhile, gold prices are consolidating near their all-time highs above $2,900 an ounce.
In a recent interview with Kitco News, Charlie Morris, Chief Investment Officer and Founder of ByteTree, said that it’s not surprising that gold is outperforming Bitcoin as it has a long history of wealth preservation, making it a respected safe-haven asset.
He said that Bitcoin’s rally has been all about President Trump, and this trade has room to unwind further.
Morris’s firm manages the BOLD Index, which invests in both gold and Bitcoin. He added that although Bitcoin has room to go lower, now is not the time to give up on it as it still has incredible potential. Read More
Can muted CPI data support gold's push to $3,000
The gold market continues to inch higher, driven by safe-haven demand, even as inflation pressures eased slightly last month.
The Consumer Price Index (CPI) rose 0.2% last month after January’s 0.5% increase, the U.S. Bureau of Labor Statistics announced on Wednesday. The inflation data was weaker than expected, as economists were looking for a 0.3% increase.
The report said that in the last 12 months to October, headline inflation rose 2.8%, down from last month’s reading of 3.0%. Annual inflation was also softer than expected, as consensus forecasts called for a 2.9% increase.
Core CPI, which strips out volatile food and energy prices, increased 0.4% in February, compared to January’s 0.4% increase. Economists were forecasting a 0.3% increase.
The report said core CPI rose 3.1% over the last 12 months.
The gold market is seeing limited gains in its initial reaction to the inflation data. Spot gold is holding above $2,900, but bullish momentum appears weak. The yellow metal last traded at $2,917.70 an ounce, roughly unchanged on the day.
Although gold is seeing a muted reaction to the inflation data, some analysts have said that it could still support higher prices. A slower rise in consumer prices could give the Federal Reserve room to cut rates sooner than expected as recession fears continue to grow. Read More
Bank of Canada cuts rate by 25 bps to 2.75% as expected, XAUCAD rises back above C$4,200/oz
Spot gold rose above C$4,200 per ounce after the Bank of Canada cut interest rates while warning about the impacts of a trade war with the United States.
In a widely anticipated move, Canada’s central bank lowered its overnight bank rate by 25 basis points to 2.75%. At the same time, the BoC signaled that trade tensions with the U.S. have made the policy environment more uncertain.
“The Canadian economy entered 2025 in a solid position, with inflation close to the 2% target and robust GDP growth,” the central bank stated in its monetary policy statement. “However, heightened trade tensions and tariffs imposed by the United States will likely slow the pace of economic activity and increase inflationary pressures in Canada. The economic outlook continues to be subject to more-than-usual uncertainty because of the rapidly evolving policy landscape.”
Gold sold off against the Canadian dollar just before the rate announcement, but recovered in the minutes afterward, last trading at C$4,204.41 per ounce for a small decline of 0.10% on the day. Read More
Gold rises amid tariff uncertainty and cooler U.S. inflation
Gold prices climbed today driven by safe-haven buying as President Trump's 25% tariffs on steel and aluminum took effect. The precious metal advanced despite February's Consumer Price Index showing inflation rising less than expected at the slowest pace in four months. April gold futures increased by $20.60 (0.70%) to close at $2,943.40, marking the second significant daily gain this week.
Image Source: Kitco News
The Consumer Price Index increased 0.2% after January's sharp 0.5% advance, according to Bureau of Labor Statistics data released Wednesday. Excluding volatile food and energy categories, the core measure also rose 0.2%.
This modest inflation reading helped the U.S. dollar achieve a fractional gain of 0.16% after seven consecutive daily declines in the dollar index. However, this dollar strength did little to impede gold's gains, as most analysts view today's dollar strength as temporary and expect the currency to resume its recent bearish trend.
The moderation in inflationary pressures failed to significantly impact market sentiment. President Trump claimed an early victory on inflation, with Press Secretary Karoline Leavitt stating on X: "Today's CPI report shows inflation is declining, and the economy is moving in the right direction under President Trump." Leavitt added that Trump is "driving down costs" and the administration would continue addressing the "economic and inflation nightmare" inherited from the previous administration.
Despite cooler February inflation figures, analysts believe the Federal Reserve remains unlikely to cut rates in March, limiting gold's potential gains from this temporary easing of inflationary pressures. Read More
Gold, silver rally on tame U.S. CPI, safe-haven buying
Gold and silver prices are solidly up and hit two- and three-week highs, respectively, in midday U.S. trading following a U.S. inflation report that came in just a bit cooler than expected. Safe-haven demand for the two precious metals remains in place amid global trade friction that could produce slowing world economic growth. April gold was last up $20.40 at $2,941.30. May silver prices were last up $0.538 at $33.68.
Today’s U.S. data point of the week saw the consumer price index report for February come in at up 2.8%, year-on-year. The CPI report was seen coming in at up 2.9%, year-on-year, versus a rise of 3.0 in the January report. The producer price index report comes out Thursday and is seen up 0.3%, month-on-month, compared to a rise of 0.4% in the January report. The U.S. dollar index lost most of its overnight gains following the CPI report.
Technically, April gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,974.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $2,844.10. First resistance is seen at $2,950.00 and then at the contract high of $2,974.00. First support is seen at today’s low of $2,911.00 and then at $2,900.00. Wyckoff's Market Rating: 8.0.
Image Source: Kitco News
May silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $34.56. The next downside price objective for the bears is closing prices below solid support at the February low of $31.365. First resistance is seen at $34.00 and then at $34.56. Next support is seen at the overnight low of $33.18 and then at $33.00. Wyckoff's Market Rating: 6.0. Read More
Image Source: Kitco News
Gold’s gains are coming from a price-insensitive mystery buyer, and the rally is likely to continue – Metals Daily’s Ross Norman
The rally in gold is happening despite the absence of many of the yellow metal’s traditional drivers, and the price insensitivity of the opaque buying means prices will likely be off to the races again soon, according to Ross Norman, CEO of Metals Daily.
Norman said that gold has long been “a subject of intrigue” for investors, but its recent rally is truly perplexing.
“Gold has always been driven by a complex web of economic, geopolitical, and market forces—but is perhaps best described as being the ‘sum of all fears,’” he wrote in the latest issue of Bullion World. “However, the dynamics that are typically at play are now behaving unpredictably. This makes the gold market an especially difficult one to understand at the moment. For starters, the ongoing bull run in gold seems to be ignoring many of its traditional correlations, leaving analysts to ask: why?”
Norman pointed out that gold’s traditional correlations and metrics fail to explain its gains.
“Gold has traditionally been seen as a hedge against inflation,” he said. “As inflation rises, gold prices tend to follow suit. And although this pattern holds in the long term, over the short term it is behaving unexpectedly. In 2024, with inflation rates in the West declining fast, gold has bucked this trend, accelerating rather than slowing down as one might expect.”
Gold has a strong inverse relationship with the U.S. dollar; when the dollar strengthens, gold usually weakens. “Yet in 2024, both the US dollar and gold have risen together—an unusual alignment that defies historical norms,” he said. Read More
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
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