Silver Prices Drop Below $38
Silver prices (XAG/USD) fell below $38.00 per troy ounce in early European trading on Monday (August 11). This decline followed two consecutive days of gains, as easing geopolitical concerns reduced demand for safe-haven assets like silver.
The easing tensions came after US President Donald Trump announced he would meet with Russian President Vladimir Putin on August 15 in Alaska to discuss a potential end to the war in Ukraine. Furthermore, market participants are awaiting confirmation of whether the August 12 deadline for a tariff ceasefire between the US and China will be extended.
Despite the decline in silver prices, expectations of an interest rate cut by the Federal Reserve this year could further support the precious metal. Weak US economic data—such as rising jobless claims and a sluggish employment report—has fueled expectations of rate cuts in September and December. Statements from Fed officials have also reinforced this view. The market will now be watching the release of US consumer inflation data on Tuesday and producer price data on Thursday for guidance on the direction of future monetary policy.
Source: Newsmaker.id