Silver Prices Under Pressure Due to Strong US Dollar
Silver prices continued to weaken on Tuesday (July 29th), remaining below $38.20 per ounce and approaching a two-week low. This pressure was primarily due to the strengthening of the United States (US) dollar, which has made precious metals like silver less attractive to global investors. The dollar's strengthening occurred following a new trade agreement deemed beneficial to the US economy.
President Donald Trump's statement on Monday further added to market pressure. Trump warned that countries that do not agree to a separate trade deal with the US could face new tariffs of 15% to 20%, significantly higher than the 10% tariffs previously imposed in April. This threat fueled uncertainty and made investors even more cautious.
Meanwhile, the market is still awaiting the outcome of trade talks between the US and China currently underway in Stockholm. Both countries hope to extend the trade truce for 90 days before the August 12th deadline. Investors are also focused on the Federal Reserve's interest rate decision, which will be announced this Wednesday. Although interest rates are expected to remain unchanged, market participants will be closely monitoring for signs of a possible rate cut in September.
Source: Newsmaker.id
