FX.co ★ Silver Prices Fall on Trade Optimism

On Thursday, silver prices dipped to approximately $39 per ounce, retreating from their peak over the past 14 years. This decline was attributed to a shift in global trade negotiations that reduced the appeal of safe-haven assets. Positive market sentiment emerged following news of advancements between the US and the EU toward reaching a trade agreement, featuring a suggested 15% baseline tariff on EU imports, with certain exemptions possible. Earlier in the week, Japan consented to a similar 15% tariff on exports to the US, which marked a notable decrease from the previously threatened 25% tariff by President Donald Trump. Concurrently, Treasury Secretary Scott Bessent indicated the likely extension of the tariff truce with China, originally set to expire on August 12, enhancing investor confidence. Regarding monetary policy, the Federal Reserve is anticipated to maintain current interest rates at next week's meeting, as caution prevails among officials who are concerned about the potential inflationary effects of the tariffs.