- Silver prices achieve lost soil at nearly 30.05 USD, increasing by 1.80% per day.
- Concerns about the tariff war and potential global recession will boost the flow of safe havens and support silver prices.
- Traders get more information from US CPI inflation data.
Silver Price Recovers Amid Trade Tensions and Recession Concerns
The price of silver (XAG/USD) edged up to around $30.05 during early European trading on Monday. The upward movement comes as growing concerns over global trade tensions and the possibility of a recession heighten demand for safe-haven assets like precious metals.
Volatility Driven by Tariff War Developments
Silver has experienced significant price swings since last week, largely in response to the United States implementing reciprocal tariffs on major trade partners. Market sentiment has been dampened by fears that these actions, initiated under the leadership of President Donald Trump, could escalate into a broader trade conflict and harm global economic growth.
Strong Industrial Demand Supports Bullish Outlook
In addition to safe-haven flows, silver continues to benefit from robust industrial demand. Key sectors such as electric vehicles (EVs) and solar energy have created a favorable backdrop for the metal. The consumer electronics segment is also poised for growth, fueled by the expanding role of artificial intelligence technologies in product innovation.
Industrial Applications Drive Over Half of Global Demand
While silver often mirrors the price movement of gold, its industrial use plays a much larger role in price dynamics. More than half of global silver demand—estimated at approximately 700.2 million troy ounces in 2024, according to the Silver Institute—is linked to sectors like electronics and photovoltaics.
Upcoming US CPI Data Could Influence Silver Prices
Looking ahead, traders will closely watch the release of the US Consumer Price Index (CPI) data for March, scheduled for Thursday. If inflation comes in below expectations, it could strengthen the US Dollar, potentially weighing on silver prices due to the metal’s pricing in USD.
