FX.co ★ Silver Cuts Losses as US GDP Data Disappoints

Silver prices slightly rebounded to approximately $32.60 per ounce following a weaker-than-anticipated report on U.S. GDP for Q1 2025, which has reignited fears of a recession amid persistent trade tensions. Instead of the anticipated 0.3% growth, the U.S. economy contracted by 0.3% in the first quarter. This downturn was largely attributed to over a 40% surge in imports, as businesses and consumers increased their stockpile of goods in preparation for expected tariff increases from the Trump administration. In a related development, the ADP National Employment Report revealed that private sector payrolls grew by a mere 62,000 in April, falling short of the predicted 115,000, marking the weakest increase since July 2024. Adding to the negative outlook, manufacturing activity in China contracted more than projected in April, suggesting reduced industrial demand. On the trade front, although Washington and Beijing have indicated a willingness to ease tensions amid the growing economic repercussions, formal negotiations are still uncertain.