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Silver under pressure as dollar gains ground
AI Summary
- Silver prices declined due to profit-taking and correction activity, as well as pressure from the rising US dollar in the foreign exchange market
- The US Dollar Index rose by 0.7% on Monday, reaching a near two-week high of 98.32 points, reflecting the continued strength of the US currency against major and minor peers
- Positive trade developments include a trade agreement with the European Union and upcoming negotiations between the US and China to prevent sharp tariff increases
Silver prices declined in the European market on Monday, extending losses for the fourth consecutive session and pulling further away from the 14-year high. The drop comes amid continued profit-taking and correction activity, coupled with pressure from the rising US dollar in the foreign exchange market.
Risk sentiment in global markets improved as fears of a US economic slowdown eased, especially after the United States reached new trade agreements with Japan and the European Union, with China possibly next in line.
The Price
• Silver Prices Today: Silver fell by 0.3% to $38.06, down from the opening level of $38.17. It recorded a session high of $38.34.
• On Friday, silver settled with a loss of about 2.3%, marking its third straight daily decline, driven by continued profit-taking from the 14-year high of $39.53 per ounce.
US Dollar
The US Dollar Index rose by 0.7% on Monday, extending its rally for a third session and reaching a near two-week high of 98.32 points. This reflects the continued strength of the US currency against a basket of major and minor peers.
The dollar’s rise comes as concerns over a US economic slowdown ease following recent trade deals struck by the United States with Japan and the European Union.
Additionally, strong economic data suggests that the Federal Reserve may take more time before resuming interest rate cuts.
Positive Trade Developments
The United States signed a framework trade agreement with the European Union on Sunday, imposing a 15% tariff on most European goods — half of what Trump had previously threatened to impose starting August 1.
This positive development helped avert a broader trade war between the two allies, who together account for nearly one-third of global trade.
Meanwhile, top US and Chinese negotiators are scheduled to meet in Stockholm on Monday to discuss extending the trade truce and preventing sharp tariff increases.
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