- Silver plunges 7% as optimism over US–China trade talks reduces safe-haven demand.
- Stronger US Dollar and profit-taking weigh, but Fed rate-cut bets support medium-term outlook.
Silver (XAG/USD) tumbled sharply to around $48.70, down 7%, after touching an intraday low of $47.90. The metal’s fall follows profit-taking at multi-year highs near $55, driven by a rebound in the US Dollar and improving risk sentiment.
Hopes for a breakthrough in US–China trade negotiations, fueled by President Trump’s comments about a potential “great deal” at the upcoming APEC Summit, boosted global risk assets and reduced demand for safe havens like silver.
The US Dollar Index (DXY) rose for a third straight day to 98.90, further pressuring silver since a stronger dollar makes it costlier for foreign investors.
However, silver’s medium-term outlook remains positive as markets expect the Federal Reserve to cut rates by 25 basis points in October. Lower rates and lingering geopolitical tensions are expected to sustain safe-haven demand.
