Silver Price Rises Over $33 Amid Safe-Haven Demand Even as US Fiscal and Tariff Issues Bite
Silver prices have risen to over $33 per troy ounce, driven by increasing safe-haven demand with increased uncertainty about the US fiscal deficit and uncertainties surrounding tariffs affecting industrial demand. Even though it had dipped in recent times, silver’s attraction as a hedging asset balances issues affecting manufacturing units, such as the photovoltaic sector, that depend greatly on silver. President Trump’s “One Big Beautiful Bill” passage in the US House, expected to expand the budget deficit, and Moody’s lowering of the US credit rating are contributing to the market jitters. At the same time, industrial demand remains underpinned by strong growth in China’s and Europe’s renewable energy industries. KEY LOOKOUTS • Watch how the Senate reacts to Trump’s “One Big Beautiful Bill” and its impact on the US budget deficit, which will inform safe-haven demand for silver. • Watch additional credit rating news and debt projections, as declining fiscal health might push more investors to silver as a hedge. • Monitor trends in the photovoltaic and renewable energy industries, particularly in China and Europe, as these markets have a significant influence on silver industrial consumption. • Note any shifting in US-China trade relations and tariff policies, which may influence silver demand within manufacturing and industrial uses. Investors need to carefully monitor the Senate’s treatment of Trump’s “One Big Beautiful Bill” because its influence on the US budget deficit will shape safe-haven demand for silver. Moreover, Moody’s recent US credit rating downgrade indicates growing fiscal risks that could drive more investors towards precious metals as a hedge. Industrial demand continues to be important, as China’s and Europe’s growing renewable energy sectors continue to power silver usage. In the meantime, continued trade tensions and tariff issues between the US and major manufacturing allies such as China may press down on silver’s industrial consumption, complicating the metal’s price picture. Silver prices are bolstered by safe-haven demand as US fiscal worries rise and credit ratings get downgraded. Chinese and European renewable energy industrial demand is robust, but trade tensions and tariff issues remain threats to the outlook for silver. • Silver price (XAG/USD) has surged past $33 per troy ounce, buoyed by safe-haven buying as a result of fiscal uncertainties. • The US House of Representatives approved President Trump’s “One Big Beautiful Bill” that added $3.8 billion to the budget deficit. • Fears surrounding the increasing US fiscal deficit and debt levels are keeping commodity prices, including silver, suppressed. • Moody’s lowered the US credit rating from Aaa to Aa1, citing increasing federal debt and expanding budget deficits. • Industrial use of silver, particularly by the photovoltaic and renewable energy sectors, continues to be firm due to expansion in Europe and China. • Trade tensions and tariff worries are eroding demand for silver in primary manufacturing industries. • Silver’s price direction is shaped by a combination of safe-haven demand and volatile industrial use in the midst of worldwide economic uncertainty. Silver is attracting notice as investors seek shelter with increasing worries regarding the United States’ fiscal stability. Recent political events, such as the approval of a large budget bill in the House of Representatives, are questioning the nation’s rising debt and deficit levels. These fiscal uncertainties are spurring demand for silver as a safe-haven asset, even when general challenges are affecting its industrial application. XAG/USD DAILY PRICE CHART CHART SOURCE: TradingView Meanwhile, silver still dominates in industries such as renewable energy, with robust expansion in solar and wind power in Europe and China bolstering demand. Yet, persistent tensions in trade and tariffs pose problems to the manufacturing industry, which is much dependent on silver. This mixture of circumstances makes it a complicated backdrop for silver, weighing against its attractiveness as a safe haven while acknowledging its industrial significance. TECHNICAL ANALYSIS Silver (XAG/USD) has crossed above the critical $33.00 resistance level, indicating fresh bullish pressure on the back of safe-haven demand. The price is now consolidating slightly above this mark, and it implies that investors are balancing the ongoing fiscal and trade uncertainty. Important levels to focus on are the $32.50 zone, which has resisted in the recent trading sessions, and resistance around $33.50, which may test the vigour of the current upward trend. Momentum gauges suggest guarded optimism, but any abrupt changes in US fiscal policy or industrial demand can rapidly impact price direction. FORECAST Silver prices may continue to increase if safe-haven demand increases amidst increasing fears about the US fiscal deficit and downgrades in the country’s credit rating. Higher geopolitical or economic uncertainty tends to increase investors’ interest in precious metals as a store of value. Also, robust industrial demand from growth in China’s and Europe’s renewable energy industries—particularly the photovoltaic industry—may further underpin silver prices in the medium term. Conversely, silver experiences downward pressure because of persistent trade tensions and tariff uncertainties that can suppress demand in major manufacturing industries. Should the economic conditions in the US stabilize or should the Senate adjust fiscal policies to alleviate deficit concerns, safe-haven demand for silver can get decimated. Additionally, any slowdown in industrial growth or diversion to other materials in manufacturing will also cut down the consumption of silver, capping its price appreciation.