Silver Price News: Silver Ends Slightly Higher After Volatile Session

Silver prices were marginally higher on Tuesday, taking support from gold prices which set yet another all-time high above $3,500 an ounce.

Silver saw a volatile day’s trading, first dropping to a low of $32.36 an ounce before recovering later to hit $33.23 an ounce, compared with around $32.80 an ounce in late trades on Monday.

Macro jitters underpin safe-haven demand

The financial markets were rattled at the start of the week, with equities and the US dollar falling on Monday as US President Donald Trump heaped pressure on the US Fed to slash the cost of borrowing. This is somewhat at odds with the current business environment because sharply higher trade tariffs are seen as inflationary, which would tend to prompt central banks to maintain or raise interest rates in a bid to keep inflation under control. A severe economic slowdown would warrant more dovish monetary policy, but the US Fed would normally be expected to make this call independently.

IMF cuts growth forecasts

Weakness in stock markets and the US dollar tend to drive additional interest in precious metals, supporting gold and silver prices. The uncertainty over economic sentiment was only magnified after the International Monetary Fund on Tuesday slashed its global growth forecasts for 2025 and cut its forecast for America’s growth this year by more than any other major economy.

While the industrial segment of silver demand could take a sharp knock from a global economic slowdown, its status as a precious metal also means it can take a strong directional lead from gold prices. With policy uncertainty in America adding to geopolitical flashpoints in the Middle East and Ukraine, gold still has the potential to lead silver prices higher yet.