XAG/USD trades near $52.00 after pulling back from record highs
Silver price (XAG/USD) maintains its position after retreating from a fresh record high of $53.77, currently trading around $52.40 per troy ounce during the European hours on Tuesday. Silver prices climbed as a historic short squeeze in London intensified a rally driven by soaring demand for safe-haven assets.
The price of the grey metal surged amid growing concerns over liquidity shortages in London, prompting some traders to secure cargo space on transatlantic flights for Silver bars, an unusually costly transport method typically reserved for Gold, in a bid to capitalize on higher prices in the London market, according to a Bloomberg report.
Meanwhile, Silver is trading at a significant premium in India compared to global prices, facing a surge in domestic demand from millions of investors. The premium has risen to as much as 10% above international rates, forcing physically backed exchange-traded funds to halt new subscriptions. Meanwhile, jewelers are struggling to keep up with strong festive demand ahead of Diwali.
The safe-haven demand for Silver surged amid renewed United States (US)-China trade tensions. The United States (US) and China decided to impose additional port fees on ocean shipping companies. The US is scheduled to start collecting fees on Tuesday.
China also started to collect the special taxes on US-owned, operated, built, or flagged vessels, but stated that Chinese-built ships would be exempted from the levies. However, China’s Commerce Ministry said in a statement on Tuesday that Beijing “hopes to resolve concerns through dialogue.”
Source : Fxstreet.com
