Lagos — Silver prices retreated on Tuesday, erasing previous gains as improved risk sentiment weighed on safe-haven demand.
Easing trade tensions between the US and the European Union, following President Trump’s decision to delay a 50% tariff on EU imports, encouraged traders to reduce exposure to defensive assets. The commitment to accelerate transatlantic negotiations helped lift market mood, prompting some profit-taking in silver.
Nonetheless, growing concerns over US fiscal risks could continue to offer medium-term support. The Congressional Budget Office projects that Trump’s tax bill, currently under Senate debate, could increase the federal deficit, fueling investors’ concerns. Additionally, long-term bias remains underpinned by persistent supply deficits and strong industrial demand.
Looking forward, investors await Wednesday’s FOMC Minutes and Friday’s PCE inflation data for further signals on the Fed’s policy stance, which could affect silver’s near-term direction.
*Bas Kooijman is the CEO and Asset Manager of DHF Capital S.A
