Former US President Donald Trump’s 25% rates for steel and aluminum imports have evoked the fear of a broader trade war, which in turn could revive the demand for safe haven for gold.
Silver profits on industrial demand, but is confronted with dollar strength
Silver (XAG/USD) holds at $ 31.82, with an intra-day high point of $ 31.94 because the expectations of industrial demand offer some support.
In contrast to gold, silver benefits from production and economic expansion, in particular in important global markets. However, the strong American dollar and Powell’s comments limit the benefit of Silver.
If inflation data exhibit persistent price pressure, silver may be confronted with extra headwind. Relieving inflation, however, could support a recovery, strengthening the position of the silver as a Dual-Purupose Activum-Zowel as a safe haven as for its industrial applications.
Investors are waiting for inflation data for instructions for nourished policy
With gold under pressure and silver that has difficulty breaking higher, traders are aimed at the coming American consumer inflation report. Analysts expect this data to strongly influence the following policy decision of the Federal Reserve.
If inflation remains high, the dollar could further strengthen, so that the gold and silver prices are lower. Conversely, the softer inflation can arouse renewed interest in precious metals.