- In Friday’s Asian session, the price of silver continues to rise, reaching about $32.45.
- The price of silver is supported by persistent worries of a global trade war.
- January saw greater US PPI inflation.
Friday’s Asian session saw the price of silver (XAG/USD) move in positive territory for the third day in a row, hovering around $32.50. The white metal is still supported by mounting fears about US President Donald Trump’s tariff proposals. The US Retail Sales for January are due later this Friday, and traders are getting ready for them.
US President Donald Trump pledged to impose reciprocal tariffs on nations who impose taxes on US products. Trump’s directive late Thursday for his administration to begin study charges by early April stoked concerns about a global trade war and increased the value of safe-haven assets like silver.
According to data issued by the US Bureau of Labor Statistics on Thursday, the Producer Price Index (PPI) increased 3.5% year over year in January as opposed to 3.3% in December. This number above the 3.2% market expectation. In the meantime, the annual core PPI increased 3.6% YoY in January, above the 3.3% estimate, from 3.7% (updated from 3.5%) earlier.
Financial markets’ perceptions that the Fed will not lower interest rates before the second half of the year were reinforced by the report. This could therefore strengthen the US dollar and affect the price of commodities denominated in US dollars.
Tariffs: What are they?
Customs duties imposed on specific imports of goods or a group of products are known as tariffs. Tariffs are meant to make local producers and manufacturers more competitive in the market by offering them a price advantage over similar goods that can be imported. Tariffs are commonly used as part of protectionist policies, together with import limitations and trade barriers. Similar to this, strategic initiatives can boost market expansion and give businesses like prop firm tech a competitive edge.