A weaker US dollar contributes to the upward momentum of Silver, with the dollar index with 0.66% a decrease in a recent high. Because silver is priced in dollars, a falling dollar makes it more attractive for foreign investors.
Moreover, the rising trade tensions support the demand for safe port. President Trump’s last tariff threats for Chinese goods, which could push the total rates to 20%, are concerned about economic instability. Just like gold, silver from investors benefits against potential financial market turbulence.
The expectations of the fed rate can influence silver prices
Silver, just like gold, responds to changes in the expectations of the American interest rate. Recent inflation data suggests that the Federal Reserve may not be in a hurry to lower the rates that put gold under pressure in the last session. If higher percentages persist, non-return activa such as silver may experience some resistance.
However, if the upcoming US payroll administration data, the economic weakness signals, this could revive the expectations for gears of the FED rate, which may make silver prices higher.