Silver prices surged on Tuesday, extending gains from the previous session as investors sought protection amid heightened global trade uncertainty. President Donald Trump confirmed he would not meet Chinese President Xi Jinping this week, dampening hopes for near-term progress in negotiations.

Meanwhile, new levies on foreign films and the prospect of pharmaceutical tariffs have added to market volatility, further driving safe-haven demand.

In parallel, the US dollar has softened modestly in recent days, reinforcing silver’s upward momentum. Structurally, the metal remains supported by a tight supply-demand balance.

The global silver market is on track for its fifth consecutive annual deficit in 2025, largely driven by solid industrial demand. This backdrop continues to underpin a bullish outlook for silver.

Looking forward, market attention turns to tomorrow’s Federal Reserve policy decision, which could play a crucial role in shaping market sentiment.

While rates are expected to remain unchanged, Chair Jerome Powell’s guidance will be closely monitored for clues on the Fed’s future monetary policy amid growing economic risks. A dovish tone could weigh further on the dollar and strengthen silver’s safe-haven appeal.

Sources: Sweet Crude Reports