Silver Prices Pressured by Dollar and Trade Optimism, Markets Await Inflation Data
Silver prices (XAG/USD) slipped in Asian trading on Monday (August 11th), ending a six-day winning streak. The white metal traded near $38.10 per ounce, pressured by a strengthening US dollar, investor profit-taking, and optimism regarding a potential truce in the trade war between the United States and China. This combination of factors reduced interest in safe-haven assets like silver.
Market participants' focus is now on developments in trade negotiations between the world's two largest economies, particularly ahead of the deadline for imposing additional tariffs. US Secretary of Commerce Howard Lutnick said last Thursday that President Donald Trump would likely extend the trade deadline for another 90 days. This statement boosted hopes for a deal that could avoid further escalation.
Similarly, US Trade Representative Jamieson Greer stated that the US and China are currently "working toward" extending the deadline. This positive signal has dampened demand for silver as a safe-haven asset. However, analysts warn that uncertainty remains high, and the emergence of new tensions could again push investors into safe-haven assets like silver.
In addition to geopolitical issues, market participants are also closely monitoring US inflation data, which will be released this Tuesday. This figure is expected to provide clues about the Federal Reserve's future interest rate policy direction. If inflation is lower than expected, the market could anticipate more aggressive interest rate cuts, which in turn could support silver prices.
Lower interest rates typically benefit precious metals like silver because they lower the opportunity cost of holding non-yielding assets. Therefore, although silver is currently under pressure, the potential for recovery remains open if inflation data shows weakness and global tensions escalate again. (alg)
Source: Newsmaker.id
