US Efforts in Ukraine Could Weaken Silver’s Safe-Haven Demand

GOLD

April gold futures are higher and are closing in on record highs as concerns over U.S. tariffs and global instability continued to drive demand for safe-haven assets. Yesterday U.S. President Donald Trump unveiled plans to impose a 25% tariff on auto imports, as well as duties on semiconductors and pharmaceuticals, intensifying trade tensions. He indicated that these auto tariffs could take effect by April 2. Uncertainty grew as the White House suggested lifting sanctions on Russia in light of ongoing diplomatic discussions.

Gold shipments from Singapore to the U.S. reached a three-year peak in January, reflecting disruptions in bullion trading as a result of pricing discrepancies.

Central bank demand for gold remains strong.

SILVER

March silver futures are lower today after recently advancing to their highest point since October as global trade uncertainties fueled increased demand for safe-haven assets like precious metals. U.S. President Donald Trump announced on Tuesday plans to impose auto tariffs of “around 25%” along with similar duties on semiconductor and pharmaceutical imports, resulting in increased concerns over a potential trade war.

Recent price gains for silver are linked to strong industrial demand from the electrification and manufacturing sectors. Also, there were recent reports that showed China added 357 gigawatts of solar and wind power in 2024, which increased industrial silver consumption.

Investors are monitoring U.S.-led efforts to mediate the war in Ukraine, which could reduce the need for safe-haven assets such as silver.

COPPER

March copper futures are lower and have declined 4.0% over the previous two sessions. This decline followed U.S.-led efforts to negotiate an end to the Russia-Ukraine war, which raised speculation that Russian copper could eventually return to Western markets. The West had previously imposed bans on Russian metal imports. Also, concerns about possible U.S. tariffs on copper imports eased after President Donald Trump indicated that copper tariffs would be implemented more slowly than those on aluminum and steel.

In China, authorities have imposed restrictions on copper smelting due to the industry’s excess capacity.

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