- The price of silver has marked $ 39.10, the highest since September 2011, Monday.
- La Plata, as a safe refuge, attracts buyers after the 30% tariff of President Trump to imports from the European Union and Mexico.
- The operators adopt caution after the US economic advisor, Kevin Hassett, suggested that Trump could dismiss the president of the Fed, Powell, “if there are reasons.”
The price of silver (XAG/USD) extends its three -day winning streak, marking new maximums since September 2011 and quoting around $ 39.00 per Troy ounce during the European hours on Monday. The price of the shelter rises in the midst of a weakened market feeling, driven by the new tariff concerns.
The president of the USA, Donald Trump, announced on Saturday a 30% tariff to imports from the European Union (EU) and Mexico as of August 1. Trump also proposed a general tariff rate of 15%-20%to other commercial partners, an increase with respect to the current base rate of 10%.
However, the European Union announced on Sunday that it will extend its pause in retaliation measures against US tariffs until the beginning of August, hoping to reach a negotiated agreement. The reports also indicated that the EU has initiated discussions with other countries affected by tariffs, including Canada and Japan, to explore coordinated responses.
Silver prices gain ground as operators adopt caution before the key inflation data of the US this week, which could offer a new impulse on the broader economic impact of new tariffs. In addition, the feeling of the market became cautious after the comments of the US economic advisor Powell“If there are reasons.” The operators now anticipate a little more than 50 basic points of feat cuts from the Fed by the end of the year.
However, the bullish potential of the silver price could be restricted as China’s commercial surplus was reduced in June. The country’s trade balance reached 585.96 billion CNY in June, below 743.56 billion previous CNY. It is important to note that silver plays a crucial role in industrial applications such as electronics, solar panels and automotive components. As one of the world’s largest manufacturing centers, industrial demand for silver in China is substantial.
SILVER – FREQUENT QUESTIONS
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.
