SILVER PRICE OF THE PRICE: XAG/USD Maximum three -month brand about 32.50 $ in the middle of a risk of risk aversion

  • Silver prices shot at a maximum of three months of $ 32.38 on Wednesday.
  • Safe shelter metals gain ground in the midst of a feeling of risk aversion after global commercial and economic uncertainties.
  • The silver called dollars gains traction as the USD experiences a technical setback.

The price of silver (XAG/USD) rises for third consecutive session, quoting around $ 32.30 per Troy ounce, during the European hours on Wednesday. Safe shelter metals such as silver gain ground due to the increase in risk aversion after global economic and commercial uncertainties.

In response to the new 10% tariff of the US that entered into force on Tuesday, China imposed a 15% tariff on the imports of liquefied coal and gas (LNG) of the USA, together with an additional tariff 10% on crude oil, agricultural equipment and certain cars.

However, operators maintain the hope of a possible resolution between the United States (USA) and China, similar to the agreements reached with Mexico and Canada. The president of the United States, Donald Trump, declared on Monday that he hopes to talk to China soon, but warned: “If we cannot reach an agreement with China, the tariffs will be very, very substantial.” However, no more developments have been reported.

Trump, earlier this week, announced a temporary suspension of tariffs on Mexico and Canada after their leaders agreed to deploy 10,000 troops on the US border to combat drug trafficking. Tariffs initially imposed two days before – 25% on Mexican and Canadian goods have been postponed for at least 30 days.

The silver called dollars attracts buyers while the US dollar (USD) crosses a downward technical correction. The dollar (DXY) index, which measures the value of the US dollar compared to six main currencies, remains under pressure down for the third consecutive day, quoting around 107.70 at the time of writing. Meanwhile, operators prepare for the US non -agricultural payroll (NFP) data on Friday, which are expected to shape the monetary policy of the Federal Reserve (FED).

Silver, which does not pay interest, is benefiting from the moderate position of the main central banks. The Bank of Canada (Boc) has stopped its quantitative hardening and has joined the Riksbank of Sweden in the reduction of interest rates. Last week, the European Central Bank (ECB) reduced its deposit facility at 25 basic points (PB) to 2.75%, while both the Bank of the Reserve of India (RBI) and the Popular Bank of China of China (PBOC) have pointed out possible rate cuts in the future. In addition, the markets expect the US Federal Reserve (Fed) to implement two rate cuts this year.

Source: Fx Street

You may also like