FX.co ★ Silver Declines on Profit-Taking

Silver prices declined to approximately $51.5 per ounce on Tuesday, marking a decrease of about 5% from the record highs experienced last week. This drop was primarily due to investors securing profits after a substantial rally influenced by macroeconomic and physical market elements. The appeal of safe-haven metals diminished under improved risk sentiment. Factors contributing to this shift included alleviating tensions between the US and China, optimism regarding a resolution to the US government shutdown, and robust corporate earnings reports. US President Donald Trump expressed optimism about reaching a favorable trade agreement with Chinese President Xi Jinping at their upcoming meeting in South Korea. Investors now keenly await Friday's significant US inflation report, which precedes the anticipated interest rate cut by the Federal Reserve next week. The peak in silver prices last week resulted from a liquidity shortage in London's silver market, prompting a global rush for physical silver, exacerbated by strong demand from India.