Trump Calms Market, Silver Immediately Drops
Silver prices weakened on Thursday, moving down toward $92 per ounce, moving away from the recently set record high. This correction occurred as the market began to calm down following US President Donald Trump's latest statement regarding Greenland.
Trump emphasized that he would not use military force to acquire Greenland. He also eased his threat of tariffs on European countries after stating that there was a "framework" for a future agreement with NATO, although the details remained unclear.
However, political tensions have not completely subsided. Denmark has stated that it will not negotiate the surrender of its territory, while the European Parliament has delayed approval of the EU-US trade agreement in protest of Trump's previous threats. This means the risk of friction remains, but the market is simply taking a breather.
Despite the price decline, silver still has a strong cushion from a fundamental perspective: tight physical supply. The silver market is said to be entering its fourth consecutive year of a global supply deficit, so room for correction could be limited if demand rebounds.
In conclusion, silver is indeed undergoing a correction as risk-off sentiment subsides, but it remains highly sensitive to new triggers—from currency movements, government bond volatility, to changes in trade policy. If global stress rises again, silver could quickly rebound. (asd)
Source: Newsmaker.id
