Silver declines on profit-taking

Silver fell to around $51.5 per ounce on Tuesday, down roughly 5% from record highs reached last week, as investors locked in profits following a sharp rally driven by macroeconomic and physical market factors.

Safe-haven metals also faced pressure as risk appetite improved, supported by easing US-China trade tensions, hopes for an end to the US government shutdown, and solid corporate earnings.

US President Donald Trump said he expects to reach a fair trade deal with China’s President Xi Jinping during their upcoming meeting in South Korea.

Meanwhile, traders await Friday’s key US inflation report ahead of an expected Federal Reserve rate cut next week.

Last week, silver hit an all-time high amid a liquidity crunch in London’s silver market that triggered a global scramble for physical supply, compounded by strong demand from India.