Spot Silver registered a fresh 5-month high of $34.51 per troy ounce on Friday, as US President Trump’s tariff plans sparked concerns of an expanding global trade war, while triggering a rush to safe haven assets.
Trump on Wednesday announced a 25% tariff on imported cars and light trucks, which followed earlier measures, including levies on steel and aluminum imports.
Canada’s Prime Minister Mark Carney said yesterday his country would respond with unspecified trade actions in case the US imposes new auto tariffs.
The European Union has also threatened to implement retaliatory tariffs.
The Trump administration’s reciprocal tariffs, which are set to take effect on April 2nd, now come in the spotlight, as many believe they may reignite inflation and hinder GDP growth.
Meanwhile, the prospects of more Federal Reserve rate cuts have also supported Silver.
Markets are now pricing in two 25 basis point rate cuts for 2025 – one in June and another in September.
The upcoming US PCE inflation data may provide more insight into the Federal Reserve’s potential course of action in regard to interest rates.
Annual PCE inflation probably remained steady at 2.5% in February, according to market consensus, while annual core PCE inflation probably picked up to 2.7%.
The data will be particularly relevant after the Federal Reserve’s recent upward revision of its annual core PCE inflation forecast.
Spot Silver was last little changed on the day to trade at $34.38 per troy ounce.
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