Deteriorating US-China Trade Relations Push Silver Higher

Silver prices rose in local markets during trading on Wednesday, amid slight increases for the ounce on the global stock exchange, due to the decline of the dollar as a result of the deteriorating trade relations between the United States and China.

Silver prices rose by about one pound during today's trading compared to yesterday's closing price. The price of 800-karat silver reached 46 pounds per gram, while the ounce rose by about $0.13, reaching $30.39.

The price of 999-karat silver reached 57 pounds per gram, while the price of 925-karat silver reached 53 pounds per gram, while the silver pound (925-karat) reached 424 pounds.

The Safe Haven report indicated that local markets price gold per gram based on an exchange rate of approximately 57.36 pounds per dollar, which constitutes manipulation in the pricing process. The report revealed increased demand in local markets for various types of silver bullion for investment purposes, especially with gold prices reaching record highs and citizens' declining purchasing power.

Silver prices in local markets fell by 2.2%, or one Egyptian pound, during last week's trading. The price of a gram of 800-karat silver opened at 46 Egyptian pounds and closed at 45 Egyptian pounds. Meanwhile, the price of an ounce on the global stock exchange fell by 13%, or $4.44, opening at $34 and closing at $29.56.

Silver prices rose slightly during trading on Wednesday amid concerns that the escalating trade war between Washington and Beijing could push the US economy into recession.

The Chinese Ministry of Finance announced on Wednesday that it will impose an additional 84% tariff on US imports starting April 10, according to Reuters, up from the 34% previously announced. This decision came after China's State Council and several government and regulatory bodies held a meeting earlier today to discuss a response to US President Donald Trump's 104% tariffs on Chinese goods.

Markets expect the tariffs to limit US companies' purchases of Chinese goods, leading to inflation and a slowdown in US economic growth, given that domestic companies lack close substitutes for Chinese imports.

Meanwhile, markets have raised their expectations for a cautious Federal Reserve policy in the face of potential US economic shocks, as markets anticipate the Fed will cut interest rates at a faster pace to mitigate market turmoil.

Silver faces headwinds, as macroeconomic uncertainty casts a shadow over the outlook for industrial demand. Silver is an industrial metal, and therefore more vulnerable to economic weakness than gold. Markets are anticipating signs of weak demand from China, the world's largest consumer of industrial metals. Recessionary risks associated with escalating global tariffs—caused by new US trade measures—are increasing uncertainty about demand. If Chinese factory activity slows or export figures disappoint, demand for silver could erode, even as broader safe-haven flows shift toward the metal.

Despite gold's unprecedented rally this month, having hit a record high of $31,687 last week, driven by a weaker dollar, instability in the US Treasury market, and renewed ETF inflows, the rally has not fully reversed in silver. Markets treat gold as a primary hedge against policy risks and geopolitical pressures, while silver lags behind without a fundamental driver.