Spot Silver held ground above $32.50 on Tuesday amid risk aversion due to political uncertainty and global trade tensions.
Yesterday US President Trump reiterated his criticism of Federal Reserve Chair Powell, suggesting the possibility of removing him. Trump warned that the economy could slow in case interest rates are not lowered immediately. The remarks brought forth concerns over the politicization of US monetary policy, which could potentially undermine the US central bank’s credibility.
Furthermore, US treasury yields have edged higher, reflecting market anxiety over inflation and growth prospects. The 10-year yield is now higher than 4.4%, while the 30-year yield climbed past the 4.9% mark. These moves suggest investors are demanding higher returns amid concerns that Trump’s trade policies could slow economic growth.
Meanwhile, ongoing US-China trade tensions have kept safe haven assets underpinned. Last week, Trump ordered a probe into potential new tariffs on all critical mineral imports, many of which originate from China. And, the Chinese government ordered airlines not to take any further deliveries of Boeing aircraft in response to the recently imposed US tariffs on Chinese goods.
Spot Silver was last little changed on the day to trade at $32.67 per troy ounce.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
