Silver retreated from a nearly 14-year high as the dollar pushed higher after US President Donald Trump escalated trade tensions on the European Union and Mexico, the world's top producer of the white metal.
Spot silver slipped as much as 0.8% as the greenback advanced during US trading hours. The precious metal is priced in US currency, so the strength in the dollar makes it less attractive for foreign investors.
Trump unleashed tariff threats this weekend, declaring a 30% rate for Mexico and the EU, and informing key trading partners of new rates that will kick in on Aug. 1 if they cannot negotiate better terms.
Earlier, silver climbed above $39 an ounce amid tightening physical supply. The implied annualized cost of borrowing the metal for one month has jumped to more than 6%, compared with the typical rate near zero.
The expanding appetite for the metal has left the physical market under strain in London, where most silver is held by exchange-traded funds — meaning it isn't available to lend or buy. Since February, the volume of silver-backed ETFs has expanded by some 2,570 tons, according data compiled by Bloomberg.
Silver's outperformance relative to gold means that the ratio between the two has dropped in recent months, though silver still remains relatively cheap historically. It currently takes about 86 ounces of silver to buy an ounce of gold, compared with a 10-year average of 80.
Concerns over US trade policy have also helped to push the metal higher. Mexico, the largest producer of silver and a key supplier to the US market, has been hit with a 30% tariff threat. The terms of the US-Mexico-Canada Agreement exclude silver from the latest levies, but some traders expressed concerns about the possibility that exemption could be threatened.
The metal is up 32% this year, surpassing gold's 27% gain. As well as being a haven asset, silver also has industrial uses, most notably in solar panels. The market is headed for a fifth year in deficit, according to the Silver Institute, an industry group.
Silver fell 0.5% to $38.23 an ounce as of 4:13 p.m. in New York. Gold, platinum and palladium also slipped. A gauge of the US dollar rose 0.2%.
Source: Bloomberg
Silver held around $41/oz, near a 14-year peak, as the market awaited the US Consumer Price Index (CPI) release, which could determine the size of the Fed's interest rate cut next week. Wednesday's US...
Silver climbed above $41 per ounce on Wednesday, holding near 14-year highs as traders increased wagers on US Federal Reserve rate cuts. On Tuesday, the Bureau of Labor Statistics reported the US econ...
Silver is currently trading at around US$41.26 per ounce in Asian trading on Tuesday, a slight decline of 0.19% from the previous session. This level remains near its highest level in recent years, re...
Silver futures prices have risen again above $41 per ounce, their highest level since August 2011, as signs of a easing US labor market strengthen expectations of a Fed interest rate cut this year. T...
The Silver price ( XAG/USD) trades in negative territory around $40.65 during the early Asian session on Monday. The white metal retreats from the 14-year-old amid the prospect of a US Federal Reserve...
European stocks closed higher Thursday, as investors reacted to the latest policy decision by the European Central Bank as well as key U.S. inflation data. The DAX index in Germany climbed 0.3%, the CAC 40 in France gained 0.9% and the FTSE 100 in...
The United States was rocked by another political tragedy after Charlie Kirk, a conservative figure and close supporter of Donald Trump, was shot dead while attending an event at Utah Valley University. This incident immediately sparked national...
US stocks were in the green on Thursday, with the S&P 500 adding 0.3% to hit new highs, while the Nasdaq was up 0.3% and the Dow Jones rose almost 200 points as investors digested the latest US CPI report. The data came largely in line with...
The United States (US) Bureau of Labor Statistics (BLS) will publish the 2025 preliminary benchmark revision to the Establishment Survey Data on...
The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday...
Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), fell to 2.6% annually in August from 3.3% in...
The US Bureau of Labor Statistics reported on Tuesday that the preliminary estimate of the Current Employment Statistics (CES) national benchmark...