- The price of silver goes back after marking a new maximum of 13 years of 36,89 $ on Monday.
- Silver, as a safe refuge, faces difficulties due to the decrease in commercial tensions between the US and China.
- The US and China advisors are expected to celebrate another meeting on Tuesday.
The price of silver (XAG/USD) stops its three -day winning streak, quoting around $ 36.50 per Troy ounce during the Asian hours on Tuesday. The prices of precious metals, including silver, receive down pressure due to the weakened demand for safe refuge amid the growing hopes of cooling in the latest tariff tensions between the United States (USA) and China.
The Secretary of the Treasury, Scott Besent, mentions the discussions held on Monday as a “good meeting.” At the same time, the secretary of Commerce, Howard Lutnick, described them as “fruitful”, increasing the expectations of progress in improving relations between the two countries.
US officials and China are expected to meet again on the second day, Tuesday at 10:00 am in London. Commercial conversations will continue while the two largest economies in the world seek to relieve tensions about sending technology and rare earth elements, according to Bloomberg.
La Plata, which does not offer yields, gained support, possibly driven by Citigroup’s forecasts on Monday, which expect the Fed to make a 25 basic points rate cut in September, October and December. The firm also expects the Central Bank to cut 25 basic points in January and March 2026.
However, the recent strongest employment data in the United States (USA) raised the expectations that the Federal Reserve (FED) maintain its reference interest rate without changes in their next two monetary policy meetings. The operators expect the US Consumer Price Index (CPI), scheduled to be published on Wednesday, in search of new perspectives on the monetary policy of the Federal Reserve.
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.
