Silver prices continued to extend their gains for the third consecutive session, reaching their highest level in three months, as the shift in the U.S. administration’s stance on tariffs has increased investor demand for safe havens amidst rising uncertainty and concerns over a potential global trade war that could impact economic growth.
In terms of trading, spot silver prices rose by 0.65% during today’s session, recording $32.55 per ounce, which is the highest level for silver contracts since November 6. However, some of those gains were later erased, and it is currently trading at $32.8 per ounce.
The stronger demand for silver came after the United States postponed the imposition of a 25% tariff on Mexico and Canada for one month earlier this week, while proceeding with a 10% tariff on China.
Beijing responded just one day later by announcing retaliatory tariffs on certain imports from the United States, targeting several major American companies in China, such as Google, with potential sanctions, raising fears of an escalating trade war between the world's two largest economies.
On the supply side, the Silver Institute recently predicted a significant deficit in the silver market for the fifth consecutive year in 2025, driven by strong industrial demand for the white metal as well as robust investments in the silver retail sector. It reported that the impact of these factors is expected to outweigh the decline in consumption in jewelry and silverware.
