Silver Price News: Silver Rises to $33 As Markets Eye Trade War Latest

Silver prices rebounded on Tuesday, rising in tandem with gold, as the US dollar weakened in response to a deepening round of US-led trade tariffs.

Prices rose as high as $33.07 an ounce on Tuesday, up from around $32.07 an ounce in late trades on Monday.

Precious metals react to trade tariff uncertainty

Both gold and silver took support from uncertainty on Tuesday linked to the latest developments in the trade war between America and some of its major trading partners. US President Donald Trump threatened to double tariffs on imports of Canadian steel and aluminium, only to hint at a potential reversal of that decision later on Tuesday after Ontario’s Premier Doug Ford suspended his own tariff plans on electricity exports to certain northern US states.

London silver volumes fall again in February

On the supply side, the amount of physical silver held in London vaults fell by 4.5% in February to 22,462 tonnes, the London Bullion Market Association said in a report: London Vault Data.

The sharp drop in silver in February marks the fourth consecutive drop in volumes in London vaults, and follows an even larger drop in January. The falling volumes of silver held in London are considered to reflect movements to the US, which have come amid uncertainty over US tariffs and their wider impacts.

Upcoming data

Looking ahead, eyes will be on Wednesday’s monthly US inflation readings as the markets try to gauge the path forward for interest rates. This will be followed by an interest rate decision by the Bank of Canada, widely expected to constitute a 25 basis-point cut to 2.75%. Then on Thursday, attention will turn to the Euro Area industrial production figures for January for a handle on industrial demand. The markets will get a further update on US inflation with the monthly factory gate prices (PPI) on Thursday, as well as the weekly US initial jobless claims figures.