Silver prices rose by half a percent on Tuesday, outperforming gold. The metal traded at $32.80 an ounce by 10:35 a.m. ET, having touched the $33 mark during the morning session in Asia. The move comes after Labor Department data showed smaller-than-anticipated inflation in April with a 0.2% CPI increase.
This took the price index 2.3% higher on an annual basis. Both the S&P 500 and Nasdaq 100 turned higher on the report, as did US Treasuries. The story in the commodity space this year has been around gold, whose price has set multiple records on inflation fears.
These fears were exacerbated by the aggressive tariff policies implemented by US President Donald Trump. Since the turn of the calendar, the safe-haven metal has gone up by more than 23%. However, silver, which is often tied to gold but has more industrial uses, has also quietly recorded a double-digit gain of nearly 13% for the year.
Silver’s strong April performance
This includes a six-month high of $34.50 in March. Still, the metal remains some ways off its record high of about $50 set in 1980.
Silver nearly matched gold’s performance in 2024, with a 21% increase on average, according to a report by WisdomTree Europe. The report predicts that strong industrial demand could push the price to $40 by the third quarter of 2025. “Silver has found support around the USD 32 mark, with further support at USD 31.62,” said John J.
Hardy, Global Head of Macro Strategy. “This represents the 0.382 retracement of the recent 19% rally. Resistance has emerged around USD 33.25, just below the recent triple top at USD 33.68.”
Despite market fluctuations and various economic factors, the demand dynamics and geopolitical developments will continue to play a crucial role in determining the trajectory of silver prices moving forward.
As chaos reigns, market participants will need to stay vigilant to the shifts in supply, demand, and broader economic conditions to effectively navigate the commodities landscape.