Silver Holds at $39, Market Focuses on Tariff Negotiations
Silver prices (XAG/USD) remained around $39.00 per troy ounce during the Asian trading session on Friday (July 25th). This marked the third consecutive day of pressure on silver prices. This condition occurred because investors began to move away from safe-haven assets like silver, as global tensions eased and appetite for riskier assets increased.
The market was monitoring positive developments in trade negotiations between the United States and the European Union, which reportedly moved closer to a new 15% tariff agreement. Furthermore, US President Donald Trump announced a separate tariff agreement with Japan, which would impose a 15% tariff on some Japanese exports to the US. This calmed the market and reduced the need for investors to seek refuge in assets like silver.
On the US economic front, data showed that initial jobless claims fell to 217,000, marking the sixth consecutive week of declines—the longest streak since 2022. This indicates that the US labor market remains strong, reinforcing expectations that the Fed will hold interest rates steady at its upcoming meeting. The market now expects an interest rate cut to likely occur in October 2025.
However, domestic political tensions are also a concern. President Trump has clashed again with Fed Chairman Jerome Powell over the central bank's renovation budget. Trump has pushed for an interest rate cut but said the renovation issue is not enough to dismiss Powell. Meanwhile, US Treasury Secretary Scott Bessent said Powell's replacement will likely be announced in December or January, opening speculation about the future direction of US monetary policy. (ayu)
Source: Newsmaker.id
