- The price of low silver as the demand for sure shelter weakens in the midst of news about the next commercial conversations between the US and China.
- The US Treasury Secretary, Scott Besent, and the trade representative, Jamieson Greer, are scheduled to meet with the Vice Prime Chinese Minister He Lifeng in Geneva.
- The Federal Reserve is expected to maintain stable interest rates, with the markets closely observing the comments of President Powell in search of clues about politics.
La Plata (XAG/USD) retreated Wednesday during Asian negotiation hours, around $ 33.00 per Troy ounce after two consecutive days of profits. The fall occurs as the demand for sure shelter weakens after the news that US and China officials will meet this week to discuss trade, which increases the hopes of de -escalated.
In a remarkable development, US Treasury Secretary, Scott Besent, and trade representative Jamieson Greer, are scheduled to meet with the Vice Prime Chinese Minister He Lifeng in Geneva during the weekend. This is the first high -level dialogue since the US imposed tariffs that triggered a global commercial conflict. The China Ministry of Commerce confirmed Beijing’s willingness to participate, citing the consideration of US proposals, global feeling and internal interests.
The strongest American dollar is also weighing on the silver called in dollars, since investors become cautious before the decision on the Federal Reserve interest rates (FED) later in the American session. A firmer dollar reduces the attractiveness of silver for holders of other currencies.
The previous profits in La Plata had been promoted by the reaction of investors to the latest commercial comments of President Donald Trump. Although he ruled out conversations with Chinese President Xi Jinping this week, he hinted at a possible 145% tariff on Chinese products. However, its announcement of new 100% tariffs on foreign films and possible levies on pharmaceutical products has added uncertainty to the market.
The Federal Reserve is expected to maintain the interest rates without changes, with the markets closely monitoring the comments of President Jerome Powell in the midst of volatility related to the trade and pressure of President Trump to cut rates.
FAQS SILVER
Silver is a highly negotiated precious metal among investors. Historically, it has been used as a value shelter and an exchange means. Although it is less popular than gold, operators can resort to silver to diversify their investment portfolio, for their intrinsic value or as a possible coverage during periods of high inflation. Investors can buy physical silver, in coins or bullion, or negotiate it through vehicles such as the funds quoted in the stock market, which follow their price in international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can cause the price of silver to shoot due to its safe refuge status, although to a lesser extent than that of gold. As an asset without performance, silver tends to climb with lower interest rates. Its movements also depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (XAG/USD). A strong dollar tends to maintain the price of silver at bay, while a weaker dollar probably drives rising prices. Other factors such as investment demand, mining – silver supply is much more abundant than gold – and recycling rates can also affect prices.
Silver is widely used in the industry, particularly in sectors such as electronics or solar energy, since it has one of the highest electrical conductivities of all metals, surpassing copper and gold. An increase in demand can increase prices, while a decrease tends to reduce them. The dynamics in US economies, China and India can also contribute to price fluctuations: for the US and particularly China, its large industrial sectors use silver in several processes; In India, the demand for consumers for precious metal for jewelry also plays a key role in pricing.
Silver prices tend to follow gold movements. When gold prices go up, silver typically follows the same path, since their status as shelter is similar. The gold/silver ratio, which shows the number of ounces of silver necessary to match the value of an ounce of gold, can help determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that silver is undervalued, or that gold is overvalued. On the contrary, a low ratio could suggest that gold is undervalued in relation to silver.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
