Silver Slides Near $32 Despite Renewed Trump Tariff Concerns
Silver (XAG/USD) prices fell for the third straight trading day and fell near $32.00 during European trading hours on Tuesday (25/2). The white metal weakened despite US President Donald Trump confirming that his plan to impose 25% tariffs on Canada and Mexico on March 4, which was delayed for a month, is still on track.
“The tariffs will be implemented on time and on schedule,” Trump said in a press conference on Monday.
President Trump delayed his tariff plans after his North American counterparts agreed on criminal law enforcement at the border to curb the flow of fentanyl and illegal immigrants. Tariffs by the US on its counterparts are expected to increase political risks and weigh on the global economic outlook. Such a scenario remains favorable for precious metals, such as Silver.
Meanwhile, the stability of the US Dollar (USD) after recovering from a fresh 11-week low has weighed on Silver prices to some extent. The US Dollar rebounded as investors digested the weak US S&P Global PMI flash data for February, released on Friday. The PMI report showed that the Services PMI, which measures activity in the services sector, contracted for the first time after expanding for 25 consecutive months.
Looking ahead, investors will focus on Russia-US peace talks to end the war in Ukraine, which has entered its fourth year. Geopolitical tensions have boosted safe-haven demand for Silver prices.
On Monday, French President Emmanuel Macron met Donald Trump to avoid a quick ceasefire deal and discussed military guarantees for Ukraine, Reuters reported.
Source: FXStreet
