Silver Weakens Slightly, Focus on Conciliatory Tone and Fed Signals
Silver prices traded negative around $52 per ounce in early Asian trading. The decline occurred as demand for safe-haven assets waned as trade tensions between the United States and China eased. Market participants awaited interest rate guidance from Fed Chairman Christopher Waller's speech on Tuesday.
President Donald Trump's softer tone also dampened hedging interest. He acknowledged that proposed additional tariffs of up to 100 percent on Chinese goods were unsustainable and planned to meet with President Xi Jinping this week. This stance helped ease trade tensions, prompting profit-taking after last week's strong rally.
On the other hand, expectations of a Fed rate cut could potentially limit silver's decline. Waller stated his support for another rate cut at the end-of-month meeting, considering the mixed labor market. St. Louis Fed President Alberto Musalem also left open the possibility of a cut if risks to jobs increase and inflation is contained. Lower interest rates lower the opportunity cost of holding silver.
Today's key points are that silver held below 52.50 as trade tensions eased, the dovish tone of Fed officials kept selling pressure at bay, the market awaited Waller's speech for clues on interest rates, and profit-taking remained looming after last week's record. (asd)
Source: Newsmaker.id
