Despite soft data, FED chairman Jerome Powell remains careful, which does not indicate an immediate need for policy changes. San Francisco Fed President Mary Daly repeated this view and stated that although uncertainty rises, the economy does not yet justify the aggressive monetary relaxation.
Silver owns nearly $ 32.10 as a policy for the eye of traders
Silver (XAG/USD) acts almost $ 32, after reaching an intraday highlight of $ 32.21, supported by the expectations of the Fed Rate and a weaker US dollar. However, the concern about delaying the global question, especially from China, has concluded profits.
Traders now praise in a 75 basic point rate reduction by the FED in 2025, with a June reduction fully expected, according to LSEG data. Lower rates usually support silver, making it more attractive as a non-ranking active. However, the demand problems of large economies can limit upward potential.
The Chinese Consumer Price Index (CPI) fell 0.7% on an annual basis in February, which marked the first deflatory trend since January 2024. This signals weak consumer expenditure in the second largest economy in the world, which means that the demand for industrial metals such as silver is possible.
Trade tensions and economic delay contribute to market volatility
The US announced 25% rates for steel and aluminum import, which will come into effect on Wednesday, despite a strong opposition of domestic companies. In retaliation, China imposed a rate of 100% on Canadian rapeseed oil, a levying of 25% on pork and seafood and extra rates for important agricultural products.
With rising global trading tensions and the delaying economy of China, the Safe-Haven-Actreting force of Gold remains intact. However, weaker Chinese demand for precious metals can limit the upward momentum.