FX.co ★ Silver Rises Ahead of Key US Inflation Data

Silver prices surged past $38.30 per ounce on Tuesday, recovering from the previous day's downturn as investors anticipated pivotal US inflation data. This data holds the potential to influence the Federal Reserve’s approach to interest rates. Fed Chair Jerome Powell recently indicated that tariffs might drive inflation higher this summer—prompting the central bank to postpone rate cuts until later this year. Nonetheless, concerns over the Fed's autonomy persist, especially after President Donald Trump reiterated his criticism of Powell, suggesting that interest rates should be slashed to 1% or even lower. On the trade negotiations front, Trump expressed an openness to renew tariff discussions with the European Union and other significant partners. Nonetheless, geopolitical tensions remained acute after Trump threatened to enforce secondary tariffs of 100% on Russia if a peace settlement with Ukraine isn’t achieved within the next 50 days.