PieTrader

Silver has long been valued as a precious metal. The metal silver is used in many bullion coins, sometimes along with gold. In addition to currency and as an investment vehicle (coins and bullion), silver is used in solar panels, water purification, jewelry, decorations, tableware and high-value utensils. (hence the term "silverware"), in electrical contacts and conductors, in mirrors, in particular as window coatings, in the catalysis of chemical reactions, as a colorant in stained glass and in special confectionery. Its compounds are used in X-ray photography and film. The world's largest silver producers are currently Mexico, Peru, China, Russia and Chile as the next largest silver producers, while the countries with the largest silver reserves are Peru, Australia and Poland.

As the US dollar recovered, silver dropped more than 1% to about $33 an ounce on Friday, reaching a one-week low. Despite indicating two possible rate cuts this year, Federal Reserve Chair Jerome Powell reiterated that the central bank is not in a rush to lower interest rates, which contributed to the dollar's strength. Powell cited concerns about the job market and slowing economic growth, but he remained cautious because of the uncertainties surrounding US President Donald Trump's tariff measures and how they would affect inflation. Silver was under additional pressure as China's industrial demand forecast was tempered by persistent economic worries, as Beijing unveiled new stimulus plans without giving specifics. However, silver prices remained near five-month highs amid concerns over tightening supply, driven in part by disruptions linked to Trump’s tariffs.

While the silver price outlook is influenced by supply and demand, it is also heavily influenced by investors buying the precious metal as a safe-haven asset during times of economic or political uncertainty. Going forward, geopolitical events, the global socioeconomic impact of COVID-19 and future Fed rate changes will be key factors to watch out for.