Silver prices climbed toward $39 per ounce on Monday, reaching their highest levels in nearly 14 years as renewed global trade tensions supported demand for safe-haven metals.
The rally followed US President Donald Trump’s announcement of a 30% tariff on imports from the European Union and Mexico, effective August 1, further escalating global protectionist risks.
In response, the European Union is reportedly deepening talks with other affected nations, including Canada and Japan, with potential coordinated responses under discussion.
Investors also turned cautious ahead of key US inflation data this week, which could shed light on the broader economic impact of the new tariffs.
On the monetary front, markets were rattled by remarks from economic adviser Kevin Hassett, who suggested that Trump could remove Federal Reserve Chair Jerome Powell “if there’s cause.” Traders are now pricing in just over 50 basis points of Fed rate cuts by year-end.