Key moments
- Spot Silver trades near three-week peak on safe haven demand
- US President Trump reverses course on a pledge to increase tariffs on Canadian steel and aluminum to 50%
- US CPI report now eyed for clues on Fed rate cut path
Spot Silver scaled a fresh three-week peak of $33.08 per troy ounce on Wednesday, underpinned by safe haven flows amid erratic US tariff plans that fueled concerns over global trade.
Yesterday US President Trump reversed course on a pledge to increase tariffs on Canadian steel and aluminum imports to 50%, hours after declaring the higher duties.
Trump’s pledge to double tariffs came after the Canadian province of Ontario imposed a 25% surcharge on electricity exports to New York state, Michigan and Minnesota.
Later, the US President backed off from the planned tariff raise after Ontario Premier Doug Ford said he had agreed to suspend the surcharge and meet with US Commerce Secretary Howard Lutnick in Washington this week.
Then, the White House confirmed that only the previously planned 25% tariff on imports of steel and aluminum from Canada and all other countries would take effect at midnight on Wednesday.
The implementation of these tariffs has intensified fears over a potential economic slowdown, while boosting safe haven assets.
Market players’ focus now sets on the key US CPI inflation data that may provide further clues over the Federal Reserve’s monetary easing path this year.
In case price pressures continue to persist, and thus, prompt the Federal Reserve to maintain interest rates higher, this could weigh on non-yielding Silver.
Spot Silver was last up 0.25% on the day to trade at $33.03 per troy ounce.
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