Silver dropped to around $30.30 per ounce on Tuesday, its lowest level in a month, as a strengthening US dollar and global economic concerns weighed on the market.
Silver extends fall as dollar strengthens
The dollar surged amid expectations that Donald Trump’s policies could stimulate US growth and inflation, potentially limiting the Federal Reserve’s ability to lower interest rates. Silver also faced pressure from a subdued economic outlook, with China’s recently announced 10 trillion yuan debt package, aimed at easing local government financing, falling short of direct economic stimulus that many investors had anticipated.
Outlook impacted industrial metals
This outlook negatively impacted industrial metals, particularly silver, which has high demand in electrification and solar panel manufacturing. Additionally, reports suggested that Chinese-owned solar panel companies had started to reduce production due to the potential of higher tariffs on the sector under Trump’s administration, adding further pressure to silver’s price trajectory.
