- The price of silver is in decline as the demand for safe refuge for precious metals weakens amid the decrease in concerns for the commercial war.
- President Trump highlighted the progress in the negotiations and confirmed recent communications with Chinese President Xi Jinping.
- The silver called dollars is losing its appeal, with the US dollar, strengthening itself to the growing optimism about the improvement of commercial relations between the US and China.
The price of silver (XAG/USD) is depreciating after registering profits the previous day, quoting around $ 33.00 per Troy ounce during the Asian hours on Tuesday. The demand for safe shelter for precious metals, including silver, continues to weaken as concerns for the commercial war decrease.
At the same time, the silver called dollars loses its appeal, since the strengthening of the US dollar (USD) makes it more face for buyers who use other currencies. The USD is gaining support as optimism about the improvement of commercial relations between the US and China grows.
US President Donald Trump recently pointed out his willingness to reduce tariffs on China, while Beijing granted exemptions on certain US imports, movements that have fed the hopes of a possible resolution to the prolonged commercial conflict between the two largest economies in the world.
The US Treasury secretary, Scott Besent, confirmed in an interview with CNBC on Monday that all the arms of the US government are actively communicating with China. He pointed out that many of the main US business partners have made “very good” tariff proposals, and China’s latest exemptions suggest a willingness to reduce tensions.
President Trump also emphasized progress in negotiations and confirmed the continuous dialogue with Chinese President Xi Jinping. Meanwhile, The Wall Street Journal reported that Trump is looking to reduce the impact of automotive tariffs by preventing overlapping rights on foreign vehicles and reducing tariffs on imported car parts.
The merchants are directing their attention to several key economic reports of the US this week, including the preliminary reading of the GDP of the first quarter, the inflation data of the PCE of March and the figures of non -agricultural payrolls in April. These publications are expected to offer important information about possible federal reserve policy movements and the broader economic perspectives.
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.
