Gold’s surge to a record $2,947.08 has reinforced silver’s bullish sentiment. Safe-haven demand is driving both metals, particularly after U.S. President Donald Trump’s tariff threats rattled markets. The proposed 25% tariffs on auto imports, semiconductors, and pharmaceuticals have raised fears of economic disruptions, prompting investors to seek protection in hard assets.
Historically, gold and silver have moved in tandem during periods of heightened uncertainty. If gold maintains its momentum and challenges the $3,000 mark, silver could continue to rise in its wake.
Fed Minutes Could Influence Short-Term Moves
The Federal Reserve’s meeting minutes, due later today, are a key focus for traders. With interest rates currently held at 4.25%-4.50%, markets are looking for signals on how long the central bank intends to keep policy restrictive. Any hawkish surprises—such as concerns over persistent inflation—could push Treasury yields higher and strengthen the U.S. dollar, potentially capping silver’s gains.
Conversely, if the Fed acknowledges economic slowing, silver could benefit. A prolonged rate pause or hints at future cuts would likely support precious metals, as lower rates reduce the opportunity cost of holding non-yielding assets.
