Advertisements
Home Gold News Silver Prices Retreat from 2012 Highs Amid Fed Caution and US-China Trade Tensions(May 22)

Silver Prices Retreat from 2012 Highs Amid Fed Caution and US-China Trade Tensions(May 22)

by anna

Silver prices continue their downward trajectory after pulling back from their recent peak of $32.51, a level unseen since December 2012. As of Wednesday’s European trading hours, the silver price hovers around $31.80 per troy ounce. Investor sentiment remains influenced by recent statements from Federal Reserve officials, with several policymakers advocating for a cautious approach to monetary policy.

Federal Reserve Bank of Boston President Susan Collins emphasized on Tuesday that any progress towards adjusting interest rates would necessitate more time, stressing the importance of patience in Fed policy. Furthermore, Federal Reserve Governor Christopher Waller indicated that he would require several more months of positive inflation data before supporting any policy easing, as reported by Reuters.

Advertisements

The appreciation of the US Dollar (USD) ahead of the anticipated release of the Federal Open Market Committee (FOMC) meeting minutes on Wednesday has exerted additional pressure on silver prices. A stronger greenback tends to dampen demand for silver as an alternative asset.

Advertisements

However, the decline in the price of silver is mitigated by renewed tensions between the United States and China. The Chinese Commerce Ministry’s announcement on Monday prohibiting General Atomics Aeronautical Systems, a US company, from engaging in import and export activities related to China, underscores the ongoing trade tensions between the two economic giants.

Advertisements

Furthermore, China’s efforts to stabilize its property sector have provided some support to safe-haven assets like silver. The Chinese Commerce Ministry’s decision, coupled with the broader backdrop of US-China trade tensions, has contributed to a cautious market sentiment, influencing the direction of silver prices amidst a complex geopolitical landscape.

Advertisements
Advertisements

You may also like

Lriko logo

Lriko is a gold portal website, the main columns include gold pricespot goldsilver pricespot silvergold futures, nonfarm payroll, gold basics, gold industry news, etc.

© 2023 Copyright  lriko.com