Silver Falls Amid Tariff Onslaught and Strong Dollar
Silver prices fell to around $36.50 per ounce on Wednesday, recording a third consecutive day of declines. This decline was largely due to a strengthening US dollar and rising Treasury yields, two factors that tend to pressure precious metal prices by increasing the opportunity cost of holding non-yielding assets like silver.
Geopolitical tensions and President Donald Trump's aggressive trade policies also weighed on market sentiment. Trump refused to extend tariffs targeting 14 countries and announced new tariffs of up to 50% on copper imports, as well as threats of 200% tariffs on pharmaceutical products. These moves added to uncertainty and strengthened demand for the dollar as a safe haven.
Meanwhile, investors' focus now shifts to the upcoming release of the latest FOMC minutes for clues on the direction of the Fed's interest rate policy. A stronger-than-expected US jobs report for June also reinforced expectations that an imminent interest rate cut may be delayed, boosting yields and pressuring the prices of metals like silver.
Current macro conditions present multiple pressures on silver: strong US economic fundamentals, hawkish trade policies, and a strengthening dollar. If this trend continues, short-term support lies around $36, while resistance could again test the $37.20 area.
Source: (ayu-newsmaker)
