- Silver prices are under pressure as demand for safe haven assets diminishes.
- The European Union and the US are nearing a deal to impose a 15% tariff on EU imports.
- Concerns about the Federal Reserve’s independence could also weaken silver’s safe haven appeal.
Silver (XAG/USD) continues to decline for the second day in a row, trading around $39.10 per troy ounce during Thursday’s Asian session. The drop in silver prices is linked to a decline in safe haven demand, fueled by optimism regarding trade agreements between the US and its significant trading partners.
The Financial Times has reported that the EU and the US are in discussions aimed at implementing a 15% tariff on goods imported from the EU. Additionally, US President Donald Trump recently announced a substantial tariff agreement with Japan, which includes a similar 15% tariff on Japanese exports.
Despite this, some concerns linger over the potential for tariffs ranging from 15% to 50% on imports from countries like South Korea and India, as negotiations continue. Traders are also looking ahead to conversations with China, with Treasury Secretary Bessent set to speak with Chinese officials soon. On the economic front, all eyes will be on next week’s Federal Reserve meeting, where it’s anticipated that interest rates will remain steady, although discussions of potential cuts in October are also on the table.
Furthermore, the demand for silver as a safe haven might decline, fueled by worries regarding the Federal Reserve’s autonomy. Treasury Secretary Scott Bessent mentioned on Thursday that a new candidate for the Federal Reserve Chair could be revealed in December or January, and he underscored that there is no rush to find a successor to current Chair Jerome Powell.
