FX.co ★ Silver Tumbles on Trade War, Demand Concerns

Silver prices dropped to $31 per ounce on Friday, marking the lowest point since January 29th and resulting in a weekly decline of over 9%. This decrease was spurred by escalating trade tensions that heightened concerns about global demand and the risks of a potential recession. On Friday, China’s finance ministry declared it would impose a 34% tariff on all U.S. goods beginning April 10, in retaliation to the duties introduced by the Trump administration earlier in the week. On Wednesday, President Trump had instituted a 10% baseline tariff on all imports, with increased rates aimed at major economies such as China (54%), the EU (20%), Japan (24%), and India (27%). Both equities and commodities suffered significantly in this selloff, while investors turned to safe-haven assets like government bonds. Despite the widespread market downturn, silver and other precious metals might find renewed support as fears of recession grow, with traders increasingly anticipating possible Federal Reserve rate cuts in the coming months.