Silver Holds Gains

Silver remained above $89 per ounce on Thursday, staying near its highest levels in a month as US tariff uncertainties and geopolitical risks supported demand for safe-haven metals. The metal also drew support from a weaker dollar amid policy uncertainty in Washington, which dampened investor confidence in the reserve currency. On Wednesday, US Trade Representative Jamieson Greer indicated that tariff rates for certain countries could rise to 15% or higher from the recently imposed 10%, without providing additional details. President Donald Trump offered relatively muted tariff commentary in his State of the Union address but signaled no intention to alter course, even after the Supreme Court struck down his broad reciprocal tariffs. Geopolitical developments also influenced the market, with US and Iranian negotiators scheduled for the latest round of nuclear talks in Geneva later today, maintaining a cautious tone among investors.

Silver rallied more than 3% to around $90 per ounce on Wednesday, approaching one-month highs session as tariff, geopolitical, and broader economic uncertainties boosted demand for safe-haven assets. The US began collecting a temporary 10% global tariff on Tuesday, which the White House is reportedly seeking to raise to 15%, following the Supreme Court’s decision last week to strike down President Donald Trump’s sweeping reciprocal tariffs. Geopolitical concerns also supported prices, with investors focused on the third round of US-Iran nuclear talks scheduled in Geneva on Thursday. Gains in precious metals, however, may be capped amid diminishing expectations for near-term monetary easing by the Federal Reserve. Fed official Susan Collins noted that holding interest rates steady for some time is likely appropriate, citing improving labor market conditions alongside persistent inflation risks.

Silver prices dropped nearly 1% to $87.5 per ounce on Tuesday as a massive liquidation event in China overshadowed a broader flight to safety. Despite persistent safe-haven demand from the new 15% US global tariff and upcoming nuclear talks with Iran, silver remains under pressure following a record 38% intraday plunge last week that shattered the speculative mania of early February. This correction is being amplified by solar manufacturers who are aggressively substituting silver with copper to offset rising costs as the metal continues its sixth consecutive year of structural supply deficits. While industrial users in the AI and electric vehicle sectors maintain a steady floor for demand, a striking 10% price premium in Chinese domestic markets suggests localized supply tightness that has yet to stabilize international rates. Investors are now watching the $85 support level closely while waiting to see if a weaker US dollar can spark a recovery amid the ongoing trade policy chaos.