FX.co ★ Silver Trims Losses but Remains Sharply Lower

Silver pared back earlier losses yet remained down approximately 4.5%, hovering around $89 per ounce on Thursday. This decline follows a steep drop from record highs, attributed to diminished risk premiums and accelerated profit-taking. The initial downward pressure began after President Trump decided against imposing new tariffs on critical mineral imports. Instead, he opted for pursuing negotiated supply agreements, alleviating immediate concerns regarding supply disruptions that had previously driven the rally. In addition, safe-haven demand decreased after Trump stated he received assurances that executions of protesters in Iran had ceased, thereby reducing immediate geopolitical risks. While the White House has not ruled out potential future import restrictions if negotiations do not succeed, the current softer policy approach and waning political uncertainty have led to consolidation across the precious metals sector. Concurrently, U.S. initial jobless claims have sharply declined to about 198,000, with continuing claims near 1.88 million. This points to a robust labor market and diminishes the urgency for immediate Federal Reserve easing.