Commodity: silver

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.

Due to growing anticipation of a rate decrease by the Federal Reserve in September after a weaker-than-expected US jobs report, silver prices increased by more than 1% to over $37.0 per ounce. While the job estimates for May and June were drastically reduced, the July data revealed that the US economy added only 73,000 jobs, far less than the 100,000 predicted. Markets responded by increasing the likelihood of a rate cut in September from 45% before the publication to 75%. The news followed Thursday's announcement of better-than-expected PCE inflation data, which highlighted persistent pricing pressures and complicated the Fed's policy stance. Meanwhile, geopolitical tensions escalated as President Trump reaffirmed a 10% global base tariff and imposed new retaliatory duties of up to 41% on countries without trade agreements with the US. He also announced a 40% levy on goods suspected of being rerouted through third countries to circumvent existing tariffs.

U.S. President Donald Trump announced plans on April 2 to impose a 10% universal tariff on all imports, with several nations to face considerably higher tariffs. Most commodities, including gold and silver, were trading higher prior to that announcement because traders anticipated that the tariffs would cause inflation. As gold is gleaming as an industrially worthless safe haven, like it did during the initial wave of the COVID crisis, that would weaken demand for industrial inputs, including silver. The metal's price has been affected by worries about the economic effects of tariffs and decreased international trade. Silver is heavily used in industry, notably in electronics and solar, thus a downturn in the economy produces a "headwind" for the metal. The price of silver is "economically sensitive,"