Silver Under Pressure Despite Safe-Haven Demand
Silver (XAG/USD) also retreated, trading near $33.87 after touching an intraday low of $33.46. The metal remains sensitive to shifts in risk sentiment, especially as traders book profits amid a stronger dollar.
While geopolitical uncertainty continues to support a floor under silver prices, upside momentum is limited by technical resistance and investor indecision.
Silver’s movement reflects a broader theme across precious metals: while macroeconomic concerns and inflation fears support long-term bullish sentiment, near-term positioning remains data-dependent.
A string of weak U.S. data has increased bets that the Federal Reserve may cut interest rates. The ISM Manufacturing PMI fell to 49.0 in March, pointing to a contraction in activity. Simultaneously, the JOLTS job openings dropped to 7.56 million in February, down from 7.76 million the month prior, signaling softness in the labor market.
Factory-level inflation surged to a near three-year high, raising concerns of stagflation. According to the CME FedWatch Tool, markets are now pricing in 80 basis points of rate cuts by year-end. Lower interest rate expectations typically favor non-yielding assets like gold and silver, providing a fundamental backdrop for longer-term strength.
As markets await further clarity from the Trump administration’s tariff details and U.S. economic reports, volatility in the metals space is likely to persist.
