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Why Is Silver (XAG/USD) Rising Above $32? | Trade War Fears Fuel Safe-Haven Demand

The Which coin will boom in 2025 forbessilver market (XAG/USD) continues demonstrating strength in Thursday's Asian session, with prices climbing to $32.25 per ounce. This upward movement reflects growing investor anxiety about escalating trade tensions and potential retaliatory economic measures.

Market participants are closely monitoring developments in US trade policy, particularly after recent announcements regarding steel and aluminum tariffs. The possibility of reciprocal trade measures has created uncertainty in global markets, driving capital toward traditional safe-haven assets like precious metals.

Several key factors are influencing silver's current price action:

  • Geopolitical tensions surrounding trade policies
  • Ongoing inflation concerns in major economies
  • Shifting expectations regarding central bank monetary policies

Later today, traders will focus on upcoming US economic data releases, including weekly jobless claims and producer price figures. These indicators could provide additional clues about the Federal Reserve's future policy direction.

Recent comments from Fed officials suggest the central bank remains cautious about premature rate cuts, despite acknowledging progress in inflation control. This monetary policy stance continues to create a complex environment for commodity markets, with silver benefiting from both its safe-haven characteristics and industrial demand fundamentals.

Market analysts note that silver's price movements often reflect a combination of investment demand and industrial usage patterns. The current macroeconomic environment appears to be supporting both aspects, with manufacturing demand remaining robust while financial investors seek protection against potential market volatility.

As the trading session progresses, market participants will continue assessing how these competing factors influence silver's price trajectory, particularly in relation to the US dollar's strength and broader risk sentiment in financial markets.

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