FX.co ★ Silver Drops as Markets React to Trump Tariffs

Silver prices dropped below $30 per ounce on Tuesday, approaching their weakest level since mid-January at $29.57, which was last observed on April 4th. This decline is attributed to the rise in U.S. Treasury yields, which diminishes the allure of non-yielding assets, amidst escalating trade war tensions. The United States has confirmed it will enforce tariffs of up to 104% on Chinese imports starting at midnight, intensifying fears of a prolonged economic clash between the two largest global economies. Although Treasury Secretary Scott Bessent mentioned that over 70 countries have engaged in discussions about tariff relief, which momentarily boosted market sentiment, the threat of greater conflict has sparked a wave of risk aversion, adversely affecting industrial commodities such as silver. Additionally, the European Union's plans for retaliatory tariffs have increased uncertainty, putting further pressure on prices. Nevertheless, the anticipation of lower interest rates and persistent demand for safe-haven assets continue to offer some support amid the heightened volatility.