Silver backs off two-week high on Chinese demand concerns

Silver prices fell in European trade on Monday on track for the third straight loss away from two-week highs on profit-taking, amid concerns about Chinese growth and weaker silver demand. 

The white metal’s losses were stymied by the US dollar's decline against major rivals amid mounting concerns about the US economy ahead of inflation data this week.

Prices

Silver prices fell 0.6% today to $32.33 an ounce, with a session-high at $32.67.

On Friday, silver lost 0.35% on profit-taking away from two-week highs at $32.77.

Silver tumbled 4.5% last week, the sixth weekly loss in seven weeks, and the largest in 2025.

The huge gains came as both the dollar and US treasury yields swooned, while Chinese stimulus hopes rebounded.

Deflationary Pressures

Recent data showed China’s consumer prices slowed down to 13-month slows in February, while producer prices contracted for the 30th month in a row.

Such deflationary pressures will no doubt impact economic activities in China and actual demand on precious metals. 

US Dollar

The dollar index fell 0.35% on Monday on track for the sixth loss in a row, plumbing four-month lows at 103.46 against a basket of major rivals.

A weaker dollar makes greenback-denominated metals cheaper to holders of other currencies. 

Investors are concerned that Donald Trump’s aggressive trade policies would hurt growth both in the US and globally.