FX.co ★ Silver Holds Losses After Sharp Selloff

Silver remained below $49 per ounce on Wednesday following a significant 7% drop in the previous session. This decline, driven largely by profit-taking after a strong rally earlier this year, constitutes the steepest one-day fall since September 2011. As a result, silver is now approximately 10% below the record highs achieved last week. The demand for safe-haven metals decreased as investor risk appetite improved, buoyed by easing tensions between the US and China over trade and optimism regarding the potential resolution of the US government shutdown. President Donald Trump expressed optimism about securing a beneficial trade agreement with China, though he noted that a meeting with Chinese President Xi Jinping has yet to be confirmed. Market participants now turn their attention to the upcoming US inflation report scheduled for release on Friday, leading up to a broadly anticipated interest rate cut by the Federal Reserve next week.