Silver continues to find firm resistance at $34 an ounce; however, one analyst said the precious metal's time will come, and it could be later this year.
After hitting a new hurdle last week, silver prices remain on the downside, now testing support at $33 an ounce. The precious metal is struggling as President Donald Trump continues to increase uncertainty around his proposed global tariffs. According to some reports, Trump is expected to impose more targeted and less generalized tariffs, which would mitigate the threat of a global trade war.
In an interview with Kitco News, Ole Hansen, head of commodity strategy at Saxo Bank, noted that silver prices have been rising in part due to growing demand in the U.S., as bullion banks flooded New York vaults amid fears that silver could be hit with U.S. tariffs.
Hansen noted that these tariff threats benefit gold, copper, silver and platinum group metals. However, he added that this is a very risky and binary negotiation: either tariffs are applied or not.
"This flip-flop makes it very difficult to navigate these markets in the short term," he said. "I foresee that we will continue to see some volatility in prices."
Looking ahead to near-term uncertainty, Hansen said silver tariffs are unlikely because the U.S. relies heavily on imported supply.
Last year, U.S. mines produced more than 1100 tons of silver, but U.S. demand exceeded 5100 tons. Hansen said the U.S. would not be able to increase its domestic production enough to meet demand. Currently, the U.S. imports most of its silver from Mexico, and about 10% of its supply comes from Canada.