Silver traded around $31.50 an ounce on Tuesday, holding near its highest level since early December as the escalating trade war between the U.S. and China boosted demand for the safe-haven asset. China announced retaliatory tariffs after President Donald Trump's 10% tariffs on all Chinese imports went into effect. Earlier, Trump agreed to delay imposing 25% tariffs on Canada and Mexico for a month after the countries agreed to take tougher action on migration and drug trafficking.

Meanwhile, strong manufacturing data from the ISM indicated some long-awaited pickup in U.S. factory activity, supporting silver's outlook as an industrial demand driver, particularly in electrification technologies. On the supply side, the Silver Institute recently forecast a fifth straight year of significant market deficits for the metal by 2025, driven by strong industrial demand and retail investment. These factors are expected to offset weaker consumption in silver jewelry and silverware.(Newsmaker)

Source: Trading Economics