Silver (XAG/USD) prices extended its upward momentum for the fourth straight day, trading around $33.90 per troy ounce during European trading hours on Friday (3/14). The precious metal benefited from rising safe-haven demand amid escalating global trade tensions.

Market concerns escalated after US President Donald Trump threatened 200% tariffs on European wine, champagne and other spirits in response to the EU's 50% tariffs on American whiskey.

Silver, a non-interest-bearing asset, gained support from rising expectations of a Federal Reserve (Fed) interest rate cut following weak US inflation data. On Thursday, the US Producer Price Index (PPI) rose 3.2% year-on-year in February, down from 3.7% in January and below estimates of 3.3%. Core PPI, which excludes food and energy, rose 3.4% year-on-year, compared with 3.8% in January.

Meanwhile, Wednesday's Consumer Price Index (CPI) data showed a decline to 2.8% year-on-year from 3.0%, while core inflation eased to 3.1% from 3.3%.

In political developments, Senate Democratic Leader Chuck Schumer announced late Thursday his support for keeping the government open, as the Senate prepares to vote on a GOP stopgap funding bill on Friday.

Additionally, US Commerce Secretary Howard Lutnick stated that the administration plans to balance the budget during President Donald Trump's term, aiming to achieve it over three years.

However, Silver's upside could be limited as the US Dollar (USD) continues to strengthen. A stronger USD makes Silver more expensive for foreign buyers, potentially dampening demand. At the time of writing, the US Dollar Index (DXY), which tracks the USD against a basket of six major currencies, was hovering near 104.00.(Newsmaker23)

Source: FXstreet