Silver rises sharply on safe-haven demand amid trade, geopolitical risks

Silver (XAG/USD) accelerates on Wednesday and trades around $90.70 at the time of writing, up 3.90% on the day. The white metal benefits from an environment marked by rising trade and geopolitical uncertainties, which revives demand for safe-haven assets.

The recent announcement by US President Donald Trump of a 10% tariff increase on imports from all trading partners continues to fuel investor nervousness. This decision comes amid legal uncertainty following the Supreme Court’s ruling regarding the use of the International Emergency Economic Powers Act, reinforcing concerns about a protectionist escalation that could weigh on global growth.

At the same time, markets remain focused on the nuclear talks scheduled for Thursday in Geneva between the United States (US) and Iran. The US president stated that he prefers a diplomatic solution, while Iranian officials indicated they are ready to take the necessary steps to reach an agreement. However, the risk of failed negotiations and a potential military escalation in the Middle East maintains a geopolitical risk premium that favors precious metals.

On the monetary front, investors are reassessing the Federal Reserve’s (Fed) rate path. Several central bank officials recently highlighted persistent inflationary pressures, calling for caution before embarking on a pronounced easing cycle. Nevertheless, markets continue to price in rate cuts in the coming months, which limits the US Dollar (USD) rebound potential.

In this context, the relative weakness of the Greenback and softer US bond yields support the appeal of Silver, a non-yielding asset that tends to benefit from a lower interest rate environment. In the absence of major US macroeconomic releases, short-term price action in the precious metal is likely to remain driven by developments on the trade front, signals from the Fed and the outcome of the Washington-Tehran talks.