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Spot Silver hovered near a fresh 19-week peak on Monday, drawing support from safe haven flows amid stagflationary fears, geopolitical risks and expectations of more rate cuts by the Federal Reserve.

US Treasury Secretary Scott Bessent said over the weekend there were “no guarantees” there would not be a recession, though there could be an adjustment.

The imposition of new tariffs by the US brings forth concerns about potential economic slowdown. The 25% tariffs on steel and aluminum imports, which are set to take effect, are expected to increase costs for businesses, potentially reigniting inflation and dampening consumer confidence.

US President Trump’s unpredictable tariff policies have led to retaliatory measures from US trading partners, while intensifying a global trade war.

Geopolitical risks also lent support to Silver after the US said that it would continue strikes against Yemen’s Houthis until they halt attacks on shipping in the Red Sea.

Market focus now sets on the outcome of the Federal Reserve’s two-day policy meeting. The Fed is widely expected to leave its federal funds rate target range intact at 4.25%-4.50% at its March 18th-19th meeting.

Investors will be paying close attention to the press conference with Fed Chair Jerome Powell for clues over the timing of any future interest rate cuts and on the Fed’s set of macroeconomic forecasts.

Spot Silver was last down 0.22% on the day to trade at $33.73 per troy ounce. Last Friday, the commodity went up as high as $34.08, or its highest price level since October 30th 2024.

Spot Silver hovers near a fresh 19-week peak.

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