FX.co ★ Silver Eases from Highs as Safe-Haven Demand Wanes

Silver prices experienced a downturn to approximately $36.50 per ounce on Tuesday. This decline interrupted a recent upward trend as easing trade tensions between the United States and China reduced demand for safe-haven assets. Representatives from both nations convened in London on Monday to deliberate on rare earth shipments and the possibility of relaxing export restrictions, with additional discussions anticipated on Tuesday. President Donald Trump commented on the negotiations, acknowledging the challenges posed by China but mentioning he was receiving favorable updates from the discussions. This decline follows a significant surge that propelled silver to its highest level in over 13 years on Monday, driven by investors shifting to alternative precious metals as gold underperformed. Aside from its status as a safe-haven asset, silver remains bolstered by strong industrial demand, particularly from the solar energy sector. According to the Silver Institute, global silver supply fell short of demand by 15% in 2024, with another market deficit anticipated this year, supporting prices despite short-term volatility.