Silver Drops as Markets React to Trump Tariffs
Silver prices fell below $30 per ounce on Tuesday, nearing the weakest since mid-January of $29.57 seen April 4th, as surging U.S. Treasury yields reduced the appeal of non-yielding assets as trade war fears deepened.
The U.S. confirmed they will implement tariffs of up to 104% on Chinese imports starting at midnight, amplifying concerns over a prolonged economic confrontation between the world’s two largest economies. While Treasury Secretary Scott Bessent noted that over 70 countries had reached out to discuss tariff relief—briefly lifting market sentiment—the looming escalation triggered a broader wave of risk aversion, weighing on industrial metals like silver.
Meanwhile, the European Union’s plans for retaliatory tariffs added to the uncertainty, further pressuring prices. Still, expectations of lower interest rates and lingering safe-haven demand continue to provide a degree of support amid the heightened volatility.
Source : Trading Economics
