Silver prices dropped 1% to approximately $30.20 per ounce on Monday, erasing gains from the previous session as the dollar rebounded.
Silver drops on trade tensions, China slowdown
This shift followed US President Donald Trump’s threat to impose tariffs and sanctions on Colombia, reigniting concerns about a potential global trade conflict. Trump’s warning came after Colombia blocked two US military aircraft that were carrying deported migrants as part of efforts to tackle illegal immigration. Additionally, market sentiment was dampened by disappointing economic data from China, the world’s largest silver consumer. Manufacturing activity in the country unexpectedly contracted, and growth in the services sector sharply slowed.
Fed set to hold rates amid Trump’s pressure
On the monetary policy front, the US Federal Reserve is widely expected to keep interest rates unchanged this week. However, it faces mounting pressure from President Trump to lower borrowing costs more aggressively in response to economic challenges.
