Silver prices climbed on Thursday, with XAG/USD benefiting from a surge in safe-haven demand amid escalating global trade tensions. As concerns over potential disruptions to international trade mounted, investors sought refuge in precious metals, driving silver to its highest levels in weeks.
The rally followed renewed fears of trade policy disputes, particularly involving major economies like the US and China, which rattled financial markets. This uncertainty fueled risk-off sentiment, pushing investors toward defensive assets such as silver, which often outperforms during periods of heightened geopolitical and economic stress.
Adding to the bullish momentum, weaker global economic data and a dip in US Treasury yields further supported silver’s appeal. Despite the US dollar’s resilience, silver managed to post gains, reflecting strong underlying demand driven by both its industrial applications and status as a store of value.
Looking ahead, traders will focus on upcoming US economic data, including inflation reports and updates on the Federal Reserve’s policy outlook. Any signs of slowing economic activity or dovish shifts from central banks could reinforce silver’s upward trajectory, while easing trade tensions might cap gains.
For now, silver remains in an uptrend, with rising global trade uncertainties and shifting market sentiment providing strong tailwinds. Unless there’s a significant reversal in risk appetite, XAG/USD could see further upside in the near term.
