Silver Under Pressure, Strong Dollar and Weak Economy Key Pressures
Silver prices (XAG/USD) experienced a moderate decline in the European session on Tuesday, trading around $47.96 per ounce, pressured by several macroeconomic factors. This decline occurred after the US dollar strengthened again, reducing the appeal of this precious metal. Although silver is often considered a safe haven asset, a stronger US dollar limits the potential for silver price increases, given that silver is traded in dollars.
Furthermore, weak global economic data also added pressure on silver prices. Manufacturing sectors in several major economies, including the US and Europe, showed signs of weakness, reducing demand for industrial metals like silver. Concerns of a further economic slowdown prompted investors to shift their attention away from industrial metals and toward safer assets like bonds.
However, despite silver's decline this session, several factors still support the potential for a medium-term rebound in silver prices. Geopolitical tensions and global economic uncertainty remain drivers of demand for precious metals. Investors are now monitoring further developments regarding interest rate policies from major central banks, particularly the Federal Reserve, which could impact silver price movements.
Source: Newsmaker.id
