Silver prices still aiming for $40 amid trade tensions: Saxo Bank

At the moment, silver prices are still struggling below the level of $34 per ounce. The rise in precious metal prices is hampered by President Donald Trump's ongoing escalation of uncertainty around his proposed global tariffs.

However, as Saxo Bank's senior commodity strategist Ole Hansen notes, silver prices are rising partly due to an increasing flow of the white metal into US warehouses amid tariff concerns. Risks of higher import duties are benefiting the metals. However, Hansen also stresses the uncertainty of the situation and the high probability of volatility in the market due to this.

According to Hansen, silver is unlikely to be hit by the tariffs in the near term, as the US is heavily dependent on imports. He estimates that silver prices could fall as low as $31.50 an ounce in the short term. That said, he sees a period of lower prices as a good opportune time to buy.

Hansen expects silver prices to rise above $35 an ounce and sees the potential for them to rise to $40 this year. He believes that significant deficit of supply will be the main support factor for the market.