By Bas Kooijman, CEO and Asset Manager, DHF Capital S.A
8th July 2025: Silver prices held steady on Tuesday, hovering near multi-year highs, as investors reacted to the current US trade policy. President Trump extended the reciprocal tariff deadline to August 1 and confirmed tariffs on several countries, while threatening an additional 10% tariff on BRICS-aligned nations. The uncertainty and trade risks could drive demand for silver and other safe-haven assets as investors look for a hedge. Additionally, Washington’s OBBB Act is projected to widen the deficit by over USD 3 trillion, which could fuel investors’ concerns and drive demand for precious metals.
Structurally, silver remains supported by robust industrial demand. Fabrication linked to green energy and technology is expected to surpass 700 million ounces this year, contributing to a fifth consecutive year of global supply deficit.
However, a better-than-expected US jobs report for June reduced the likelihood of a near-term Federal Reserve rate cut. This could help lift the US dollar and Treasury yields, curbing silver’s momentum. Looking ahead, traders will monitor developments on US trade talks, fiscal policy implementation, and the Fed’s policy trajectory.