FX.co ★ Silver Pulls Back on Profit-Taking

Silver prices experienced a nearly 1% decline, settling at approximately $32.30 per ounce on Tuesday. This downturn was driven by investors capitalizing on profits following a robust rally in precious metals. The recent uptick was fueled by safe-haven demand amid escalating concerns about the global economic repercussions of intensifying trade tensions. Market sentiment was negatively affected by halted US-China trade discussions, with Beijing accusing Washington of tariff misuse and advising other nations against forming one-sided agreements. Furthermore, President Donald Trump's demands for immediate interest rate cuts, paired with his threats to remove Federal Reserve Chair Jerome Powell, intensified worries regarding the Fed's independence, diminishing investor confidence in US assets. Despite this downturn, silver prices remain elevated, bolstered by ongoing uncertainty in financial markets and continued demand for safeguards against geopolitical and policy risks.