FX.co ★ Silver Falls as US and China Slash Tariffs

Silver prices fell by over 2%, dipping below $32 per ounce on Monday, as last week’s gains were reversed due to a reduced demand for safe-haven assets. This shift followed a significant breakthrough in trade relations between the U.S. and China. Over the weekend in Switzerland, both countries reached an agreement to substantially cut tariffs, which has eased geopolitical tensions and sparked optimism across global markets. According to the initial deal, U.S. tariffs on Chinese goods will be slashed from 145% to 30%, while China will reduce its duties on U.S. imports from 125% to 10%. This improved appetite for risk has broadly impacted precious metals. However, this trade agreement has also enhanced the long-term outlook for silver, particularly in its industrial applications in the renewable energy sector, where both the U.S. and China are key contributors.