FX.co ★ Silver Falls on US-China Trade Optimism

Silver prices declined to nearly $48 per ounce on Monday, continuing the downward trend from last week. This movement is attributed to diminished demand for safe-haven metals due to favorable developments in the US-China trade discussions. Optimism is building for a potential trade breakthrough during the upcoming meeting between President Trump and President Xi on Thursday. This follows productive talks over the weekend between US and Chinese trade representatives, where they reached consensus on several challenging issues. US Treasury Secretary Scott Bessent announced that the US had retracted its threat of a 100% tariff, while China agreed to a one-year pause in its plans to expand controls on rare earth exports. Additionally, expectations are high that the US Federal Reserve will announce an interest rate cut this week, influenced by weaker-than-anticipated inflation data released on Friday. The previous week, silver experienced a more than 6% decline, driven by profit-taking as concerns about overvaluation surfaced after the metal reached record highs.