FX.co ★ Silver Prices Climb on Renewed Trade Tensions

Silver prices experienced an increase of over 1% on Monday, reaching approximately $33.40 per ounce, a level not seen in nearly two months. This rise is attributed to heightened global trade tensions, which have prompted investors to seek refuge in safe-haven assets. The market shift occurred following US President Donald Trump's late Friday announcement to double tariffs on steel and aluminum imports to 50%, effective June 4. In response, China dismissed Trump's allegations of breaching a trade agreement settled in Geneva last month, further complicating the likelihood of a discussion between Trump and Chinese President Xi Jinping. This tariff announcement adds to the ongoing legal contestation regarding the legitimacy of Trump's trade measures. Although initially some tariffs were blocked by a federal court, a recent decision by an appeals court reinstated them, permitting the legal proceedings to continue. Amid rising uncertainty surrounding global trade policy and its economic implications, investors turned to precious metals as a protective measure, resulting in an upswing in silver prices, accompanied by a rise in gold.