Silver rises above $33 despite Trump tariff pause
Silver jumped more than 2.5%, reaching nearly $33.30 in Friday’s North American markets, marking its highest level in over three months.
The white metal (XAGUSD) soared even though risks of a global trade war have paused temporarily and the Federal Reserve is expected to maintain a restrictive monetary policy stance for longer, News.Az reports citing foreign media.
US President Donald Trump seems short of imposing reciprocal tariffs than what market participants had anticipated. Investors had expected that Trump could unveil a detailed plan of reciprocal tariffs on Thursday.
The assumption was based on his tweet at his Truth Social account that, “Three great weeks, perhaps the best ever, but today is the big one: reciprocal tariffs!!! Make America great again!!!”, which came in early North American trading hours on Thursday.
However, Trump only passed an order to the Commerce and Treasury departments to prepare a plan on reciprocity, which confirmed that tariffs are not happening, at least for now.
This scenario diminished fears of global uncertainty, which is technically not favourable for silver.
The impact of a delay in Trump’s reciprocal tariffs is visible on the US dollar, with the DXY Dollar Index revisiting the four-week low around 106.80.
According to the CME FedWatch tool, the Fed is expected to keep interest rates steady in the next three policy meetings.
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