Spot Silver held above the $33 mark on Tuesday, bouncing off 1 1/2-week low, amid ongoing uncertainty regarding the upcoming round of US tariffs, which drove safe-haven demand.
The Trump administration’s reciprocal tariffs are set to take effect on April 2nd, which many believe may stoke inflation and hamper GDP growth.
However, US President Trump has indicated the reciprocal tariffs may potentially be less severe than feared. Markets took that as a sign of flexibility, which trimmed overall anxiety to an extent.
Still, Trump also pledged to impose tariffs on automobiles, pharmaceuticals and other industries.
Meanwhile, Atlanta Federal Reserve President Raphael Bostic said he expected progress on inflation to slow in the months ahead. Therefore, he now expects just a 25 basis point rate cut by the end of this year.
US PCE inflation figures, due out on Friday, may provide more clues on the Federal Reserve’s interest rate cut path.
Markets are now pricing in two 25 basis point rate cuts for 2025 – one in June and another in September.
Spot Silver was last up 0.73% on the day to trade at $33.26 per troy ounce.
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