Silver prices have steadied around $33.10 per troy ounce amid a weakening US Dollar, with concerns growing over a potential slowdown in the US economy. The Federal Reserve’s outlook for two rate cuts later this year may present resistance for Silver, particularly after maintaining the federal funds rate at 4.25%–4.5%.
The US Dollar Index has stopped its three-day rise, trading near 104.10. Market attention is on the upcoming US S&P Global Manufacturing PMI for March, while the administration’s tariff strategy revamp could further influence Silver prices.
Industrial Demand And Economic Impact
Improved risk sentiment, alongside easing geopolitical tensions from recent US-Ukrainian discussions, may also affect Silver’s safe-haven flows. Industrial demand for Silver, especially in electronics and solar energy, plays a role in its pricing dynamics, linked to economic performance in the US, China, and India.
Silver prices generally respond to movements in Gold, with the Gold/Silver ratio offering insights into their relative valuations.
What we see now is Silver holding firm around that $33.10 mark, largely weighed by the ongoing retreat of the US Dollar. There is growing caution over the American economy slowing down, and that is feeding into market sentiment. The Federal Reserve has held its rate steady between 4.25% and 4.5%, but the expectation of two rate cuts this year could put a lid on further moves higher for Silver, at least for now.
The Dollar Index has lost momentum after three consecutive days of gains, hovering near 104.10. A lot of eyes are on the US S&P Global Manufacturing PMI release for March. This could give a better reading on the broader direction for the economy and will likely steer investor positioning in the short term. Meanwhile, the administration is adjusting its approach to tariffs, and this could have knock-on effects for trade-related assets, including Silver.
Gold Silver Relationship
Sentiment in broader markets has improved somewhat, which could slightly reduce demand for Silver as a safe-haven asset. Some of this stems from the easing geopolitical risks after recent discussions between US and Ukrainian officials. If tensions remain controlled or shift in another direction, that could change the way funds are allocated in the metal.
Beyond the macroeconomic backdrop, industrial consumption is another piece of the puzzle. Silver’s use in electronics and solar technology means demand is closely tied to how economies in the US, China, and India are faring. If economic activity in those regions remains stable or even picks up, we could see support for prices from that end.
Gold still holds sway over Silver’s movements. The relationship between the two metals, as measured by the Gold/Silver ratio, can provide useful insight into relative valuation. It is worth keeping track of that relationship, as shifts there often give clues as to whether Silver is positioned to strengthen or weaken next.
