Silver Price News: Silver in ‘Wait-and-See’ Mode as Gold Eases

Silver prices broadly held steady on Tuesday, taking a lead from gold prices, which traded marginally lower in calmer conditions following recent increased volatility.

Silver prices held just above $33.00 an ounce on Tuesday, holding within the previous week’s trading range.

A degree of calm emerged in the precious metals markets this week, with the relative price stability coming in the context of gold’s all-time highs of over $3,500 an ounce on April 22. Signs that the US and China could pull back from the recent tariff war brought some sense of relief in financial markets, even if macroeconomic risks linked to US trade policies are still present.

Gold-to-silver ratio widens

Recent relative strength in gold prices has pushed the gold-to-silver ratio to well above 100, compared with around 80-90 over most of the last three years. This reflects strong demand for safe havens like gold during times of economic uncertainty, while silver is less supported due to its exposure to a potential loss of industrial demand during a global slowdown.

Upcoming data

Looking ahead, the markets will be watching out for Wednesday’s Q1 GDP growth figures for the Euro Area and US, as well as the US core PCE price index – the US Fed’s preferred measure of inflation. Looking further out, Thursday will bring the US ISM manufacturing PMI figures for April, followed by US non-farm payrolls and unemployment figures for April.

The latest economic data may help the markets chart the path forward for US interest rates. Traders broadly expect no change at the US Fed’s upcoming meeting on May 7, but market figures are highlighting a roughly 65% chance of a cut of at least 25 basis points at the following meeting on June 18.