FX.co ★ Silver Slips on Easing Safe-Haven Demand

Silver prices fell below $33 per ounce on Wednesday, reversing the previous day's gains as global trade tensions eased and reduced the demand for safe-haven assets. This decline followed productive trade discussions between the U.S. and China over the weekend in Switzerland. During these talks, both countries agreed to temporarily reduce tariffs to 30% and 10%, respectively, for 90 days, marking a significant move towards de-escalation. While this has alleviated fears of a prolonged trade conflict, concerns persist about the outcome once the agreement ends, with further negotiations anticipated in the coming weeks. The decreased geopolitical risk has led markets to adjust their expectations for significant Federal Reserve rate cuts, exerting additional downward pressure on silver. However, Tuesday's report of lower-than-anticipated U.S. consumer inflation in April offered some support to precious metals, as it led to a weaker dollar, thereby enhancing the appeal of silver to international buyers.