Silver prices are experiencing an upward trend, trading around $33.30 per troy ounce amid growing safe-haven demand and concerns over a potential US recession. The increased demand for Silver follows US tariff increases on steel and aluminium, contributing to economic uncertainty.
In February, US inflation decelerated, with monthly headline inflation dropping to 0.2% from 0.5% in January. Core inflation also eased to 0.2%, prompting speculation of earlier interest rate cuts by the Federal Reserve.
Us Dollar And Silver Prices
The US Dollar remains under pressure, with the Dollar Index at approximately 103.50, making Silver more accessible for international buyers. Various factors, including geopolitical tensions, industrial usage, and economic conditions in major economies, influence Silver prices.
Silver’s performance is closely linked to Gold, with similar movements observed between the two metals. The Gold/Silver ratio serves as a tool for assessing the relative value of both precious metals.
The cost of Silver continues to push higher, reaching around $33.30 per troy ounce. With safe-haven demand gaining momentum and rising recession fears in the United States, traders are adjusting their positions. The recent tariff adjustments on steel and aluminium have added another layer of uncertainty to markets, encouraging more investors to shift towards metals. These elements create a backdrop that could sustain further buying interest, especially if economic concerns deepen.
February saw a slowdown in US inflation, with headline inflation for the month easing to 0.2% from January’s 0.5%. Core inflation followed the same path, coming in at 0.2%, which has stirred discussions about the Federal Reserve reconsidering its stance on interest rates sooner than anticipated. If the central bank signals a change, asset prices tied to inflation expectations are likely to react. This shift provides an environment where volatility could persist, particularly in commodity markets.
Gold Silver Correlation
The US Dollar has struggled to gain ground, with the Dollar Index sitting near 103.50. This weaker position makes Silver more attainable for global buyers, potentially offering further support to prices. Market dynamics remain closely tied to geopolitical developments, industrial demand, and economic performance in key regions. With multiple factors converging, short-term positioning in derivative contracts could require greater attention to detail.
Silver often moves in tandem with Gold, given the historical correlation between both assets. The Gold/Silver ratio remains a key reference point when evaluating relative performance. Fluctuations in this measure may provide directional clues, particularly as traders reassess their strategies in response to shifting economic expectations.
