- Silver prices fell almost 3% on Monday following reports that Israel and Hezbollah are reaching a ceasefire agreement.
- President-elect Donald Trump plans to impose tariffs on imports from Mexico, Canada and China.
- Non-yielding Silver struggled due to bond market optimism following the selection of Scott Bessent as US Treasury Secretary.
The price of Silver (XAG/USD) remains around $30.40 per troy ounce during Asian trading hours on Tuesday, following a drop of almost 3% in the previous session. This downside risk for safe-haven assets such as the metal Silver is linked to reports suggesting that Israel and Hezbollah are close to reaching a ceasefire agreement.
Additionally, the price of dollar-denominated Silver has been pressured by a stronger US Dollar (USD) after President-elect Donald Trump announced plans to impose a 25% tariff on all imports from Mexico and Canada starting in his first day in office, along with an additional 10% tariff on products from China. A stronger US Dollar makes precious metals more expensive for foreign buyers, negatively affecting demand for Silver.
Unyielding Silver faced downward pressure due to optimism in the bond market following the selection of Scott Bessent as US Treasury Secretary in the incoming administration. Bessent has advocated for a gradual approach to trade restrictions and has expressed a willingness to negotiate tariff levels in coordination with President-elect Donald Trump.
However, less hawkish comments from Federal Reserve (Fed) officials on Tuesday may have offered some support for Silver prices. Chicago Fed President Austan Goolsbee suggested the Fed is likely to continue lowering interest rates toward a neutral stance that neither stimulates nor restricts economic activity. Meanwhile, Minneapolis Fed President Neel Kashkari signaled that another rate cut could be considered at the Fed’s December meeting, according to Bloomberg.
Investors are now focused on the Federal Reserve’s November meeting minutes, which will be released later in the North American session. These minutes could provide crucial information on the direction of the central bank’s monetary policy.
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.
