XAG/USD refreshes five-month high near $34.60 on global trade concerns
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Silver price jumps to near $34.60 as its safe-haven demand improves amid growing concerns over global trade. Investors expect that Trump’s tariffs will impact economic growth and prompt inflation across the globe. The US core PCE inflation data rose at a faster-than-expected pace of 2.8% in February. Silver price (XAG) posts a fresh five-month high near $34.60 in North American trading hours on Friday. The white metal strengthens as investors turn cautious ahead of April 2, when United States (US) President Donald Trump is scheduled to unveil reciprocal tariffs. Market participants expect that Trump’s tariffs will result in an economic slowdown and boost inflationary pressures in the near term. Such a scenario increases the appeal of safe-haven assets, such as Silver. However, the US Dollar (USD) slumps as Trump’s tariffs will also weigh on the US economic outlook. Investors expect the impact the tariffs will have on US imports, which would be forced to pass them on to consumers. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, slides to near 104.00. Meanwhile, hotter-than-expected US core PCE Inflation – which excludes volatile food and energy items – fails to provide support to the US Dollar. The underlying inflation data rose at a faster pace of 2.8% year-on-year compared to estimates and the prior release of 2.7%. Month-on-month core PCE inflation grew by 0.4%, faster than expectations and the former reading of 0.3%. Accelerating inflationary pressures force the Federal Reserve (Fed) to maintain a restrictive monetary policy stance for a longer period. Higher interest rates by the Fed bode poorly for non-yielding assets, such as Silver. Silver technical analysis Silver price advances toward the flat border of the Ascending Triangle chart pattern formation on the daily timeframe near the October 22 high of $34.87. The upward-sloping border…
Filed under: News - @ March 28, 2025 3:26 pm