The US Fed held its monetary policy meeting on January 30 and, as expected, paused interest rate cuts, maintaining the benchmark interest rate at 4.25%-4.5%. During the press conference, Jerome Powell stated that the Fed is not in a hurry to adjust its political stance and needs to observe data and the effects of Trump's policies. As the Fed's interest rate cut aligned with market expectations, information about Trump's tariff hike triggered market risk-aversion sentiment and an upward trend in procurement demand.
On February 1 local time, Trump signed an executive order under the International Emergency Economic Powers Act (IEEPA), imposing a 10% tariff on Chinese products exported to the US, a 25% tariff on imports from Canada and Mexico, and a 10% tariff on energy resources from Canada. In response, the relevant countries implemented urgent countermeasures. On February 3 local time, Trump signed another executive order to suspend tariffs on Canadian goods, postponing their effective date to March 4, 2025. Due to market concerns over the tariff hike, the price spread of precious metals between the US and London continued to widen. Spot inventory gradually shifted from London to COMEX inventory, and the issue of delivery brand mismatches was resolved after remelting in other countries. The US market's demand for spot silver and gold drove prices upward, further boosting market prices.
The price of spot silver began to rise from its January 30 level, experienced a decline on January 31 before rebounding, fluctuated downward, and then showed a daily upward trend in February. Spot silver reached $32.366 per ounce.
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