Key moments
- Spot Silver near highs last seen on February 14th
- Cooler US CPI inflation adds to case for future rate cuts
- Concerns over implications of the tariff war persist
Spot Silver held not far from a one-month high of $33.32 per troy ounce on Thursday amid persisting tariff uncertainty, while US inflation eased more than expected last month, reinforcing the case for future rate cuts by the Federal Reserve.
The prospect of lower interest rates tends to support Silver, which yields no interest.
Annual headline consumer inflation in the US eased to 2.8% in February from 3% in January. And, annual core CPI inflation eased to 3.1% in February, or the lowest level since April 2021, from 3.3% in January.
Yet, the data did not fully capture the flurry of tariffs announced by the Trump administration.
“What is more uncertain is the outlook for future inflation and the state of U.S. economic activity, thanks largely to the unpredictability of U.S. trade policy,” James Reilly, senior markets economist at Capital Economics, was quoted as saying by Reuters.
The imposition of new tariffs by the US brings forth concerns about potential economic slowdown. The 25% tariffs on steel and aluminum imports, which are set to take effect, are expected to increase costs for businesses, potentially reigniting inflation and dampening consumer confidence.
US President Trump’s unpredictable tariff policies have led to retaliatory measures from US trading partners, while intensifying a global trade war.
Spot Silver was last down 0.30% on the day to trade at $33.13 per troy ounce.
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