Silver Price News: Silver Rises with Gold, US Dollar Weakness 

The silver market saw a volatile session on Tuesday which ultimately resulted in moderate day-on-day gains, as strength in gold prices helped pull the grey metal higher.

Silver prices stood at around $32.00 an ounce by late Tuesday evening, up from around $31.72 an ounce in late trades on Monday. However, Tuesday saw volatile conditions, with silver prices hitting a high of $32.16, only to crash quickly to the day’s low of $31.52 an ounce before recapturing the losses later in the session.

Trump follows through on tariff threats

The price gyrations came as the markets reacted to US trade tariffs on Canada, Mexico and China, which dampened sentiment in the financial markets and boosted interest in safe havens like precious metals. Firmer gold prices provided a strong force for higher silver prices on Tuesday.

The latest developments pushed the US dollar down to a three-month low against the Euro on Tuesday, which helped drive dollar-denominated gold and silver prices higher.

That said, while gold benefits from economic uncertainty as a contrarian asset class, silver’s position is less clear as it plays a role as an industrial as well as a precious metal. In that context, demand for silver is potentially at risk from any disruption to world trade if industrial activity takes a knock.

Upcoming data/events

Data points to watch out for on Wednesday include the S&P Global Composite PMI figures and monthly US ISM Services data for February, as well as the monthly US factory orders. Attention will then turn to Beijing, for the Chinese National People’s Congress, which is a platform for policy decisions for the year ahead. Any new stimulus measures designed to boost China’s economy could trigger renewed industrial demand in China, a major global consumer of silver.