13.02.2025 09:55
Silver prices are holding steady above $32.30, defying expectations amidst a confluence of global economic factors. The resilience of XAG/USD is particularly noteworthy given the lingering uncertainty surrounding potential reciprocal tariffs announced by President Trump. This uncertainty, coupled with a weakening US dollar, is providing unexpected support to the precious metal.
Optimism surrounding the prospect of peace talks between Russia and Ukraine has significantly improved market sentiment. This risk-on environment has contributed to the US dollar's decline, a factor typically supportive of silver prices. However, a surprisingly strong US Consumer Price Index (CPI) report for January fueled speculation that the Federal Reserve will maintain its higher-for-longer interest rate strategy. While this typically puts downward pressure on precious metals, the silver market seems unfazed by this potential headwind, at least for now.
The White House preemptively hinted at the possibility of President Trump announcing retaliatory tariffs before his meeting with Indian Prime Minister Modi. The potential announcement of these tariffs, echoing Trump's campaign promise of "an eye for an eye" in trade disputes, could escalate global trade tensions and further bolster silver's safe-haven appeal. This contrasts with the prevailing risk-on sentiment driven by the Russia-Ukraine peace talks, illustrating the complex interplay of market forces affecting the silver price. The recent rally in silver, initially spurred by the outbreak of the Russo-Ukrainian war, continues to be influenced by this geopolitical chess game.
Despite the potentially negative implications of a prolonged period of higher interest rates, the US dollar's weakness has proven to be a stronger influence on silver's current performance. The US Dollar Index (DXY) has dipped near 107.50, reflecting the overall risk-on sentiment. Technical analysis shows that silver prices continue to face resistance near specific levels (details omitted, as specified in the source text), but for now, the current price action suggests a surprising level of resilience in the face of conflicting economic indicators.
