By Bas Kooijman, CEO and Asset Manager of DHF Capital S.A
Silver prices fell more than 2% on Tuesday, deepening recent losses and reversing all gains recorded earlier this month. After peaking near USD 54 per ounce, the metal now trades below USD 46, setting up for its first monthly decline in six months if current conditions persist.
Improving sentiment around US-China trade talks affected safe-haven assets. Markets are increasingly optimistic ahead of Thursday’s meeting between Presidents Trump and Xi, following a weekend of productive negotiations where both sides reached consensus on several contentious issues. These developments lifted investor sentiment and fueled a rotation toward riskier assets.
Meanwhile, investors anticipate a Federal Reserve rate cut this week after soft inflation data reinforced easing expectations. Lower rates could weigh on US treasury yields and provide temporary relief to the recent decline in non-yielding assets like silver and gold.