Silver (XAG/USD) has recovered some of its recent losses, trading around $29.85 during the early Asian session on Wednesday. Analysts suggest that this correction may set the stage for a strong rebound, driven by rising trade tensions and growing fears of a recession. As market participants await the release of the Federal Open Market Committee (FOMC) Minutes later on Wednesday, traders remain cautious and closely monitor developments.
US President Donald Trump, speaking late Tuesday, reiterated his stance on imposing additional tariffs on numerous countries, despite efforts by trade partners to avoid the measures. Trump indicated he was not considering a pause in his tariff plan but left the door open for potential negotiations. His comments came after senior officials signaled the administration’s willingness to engage with trade partners. With a 10% tariff already in place and retaliatory tariffs set for implementation on Wednesday, this uncertainty has heightened market volatility and increased demand for safe-haven assets like silver.
In addition to the trade concerns, strong industrial demand—particularly from emerging sectors such as electric vehicles (EVs) and solar energy—continues to support silver prices. The development of artificial intelligence (AI) and the growing consumer electronics market are also expected to drive further demand for silver in the near future.
Traders are also closely watching the FOMC Minutes for any signals regarding the Federal Reserve’s monetary policy. If the minutes reveal any hawkish tones from Fed officials, the US dollar could strengthen, potentially weighing on silver prices in the short term.
