Trump’s tariff problems stimulate the question of the silver
The profession of Silver’s safe port has been strengthened after concern about possible American rates under President Donald Trump. Although Trump has not explicitly mentioned silver in his trade policy discussions, traders are opposed to uncertainty, which leads to a strong demand on the spot market. The White House has already announced rates for Mexico and Canada, with additional measures being considered for China.
Federal Reserve keeps the rates stable, traders are waiting for inflation data
The Federal Reserve chose to keep interest rates unchanged on Wednesday and to maintain the current reach of 4.25%–4.50%. Chairman Jerome Powell strengthened the cautious attitude of the FED and stated that the cutbacks would require “real progress on inflation” or a remarkable decrease in labor market conditions.
The bond market reacted with a decrease in American treasury yields, because the return of 10 years with 6 basic points fell to 4.492%, while the return of 2 years of almost 3 basic points fell to 4.201%. Investors are now focused on the release of the US Personal Consumceptures Expenditures (PCE) Price Index, an important inflation meter that could influence the future policy decisions of the FED.
The power of the gold offers extra support
The Rally of Silver also benefits in power in gold, which rose to its highest peak of $ 2,790.17. The Bullish Momentum of Gold, driven by the demand for safe port in the midst of tariff problems and economic uncertainty, has offered extra support for silver prices. Buy from central bank, geopolitical risks and uncertainty about the tax policy of the US have all contributed to sustainable demand for precious metals.
The US dollar was secured after the Fed decision, but silver and gold remained resilient. Market participants continue to weigh the economic impact of Trump’s policy and the chance of future tariff reductions, which can further form the sentiment from investors to precious metals.
Silver Market Prognast: Bulls focuses on higher levels
With Silver Breaking beyond $ 30.98, the next upward target is in the $ 31.81 – $ 32.33 zone. If the bullish momentum continues, further profits can follow. However, traders must follow the support levels closely, with $ 30.98 now as a key floor.