Silver prices fell to around $48 per ounce on Monday (October 27th), continuing last week's sharp decline. Safe-haven sentiment began to weaken as the market saw the possibility of a US-China trade truce ahead of the Trump-Xi meeting on Thursday. Negotiators from both countries said they were close to agreement on several previously sensitive issues, and US Treasury Secretary Scott Bessent also said Trump's threat of 100% tariffs was "almost impossible." Beijing was even prepared to hold off on expanding rare earth export controls for a year. So, the market feels global tensions are easing—and if tensions subside, the need for hedging through silver will also decrease.

At the same time, the Fed is expected to cut interest rates this week after softer-than-expected US inflation data. Typically, lower interest rates are good for precious metals because the opportunity cost of holding non-interest-bearing assets (like silver) is lower. But in the short term, silver is still being hit by profit-taking. Last week, the metal fell more than 6% as many traders exited after prices briefly surged to record highs. This means the market is now asking: is this just a healthy correction after the euphoria... or the beginning of a deeper decline? (az)

Source: Newsmaker.id