Spot Silver slid to a 1 1/2-week low of $31.88 on Monday, as a breakthrough in US-China trade relations led to an investor move from safe-haven assets toward riskier instruments.
During high-profile trade talks in Switzerland over the weekend, US and Chinese officials agreed to significantly lower tariffs, which alleviated global trade tensions.
US tariffs on Chinese imports will be reduced from 145% to 30%, while China’s levies on US imports will be cut from 125% to 10%.
The two sides have also agreed on a 90-day pause on measures.
“There is a de-escalation between China and U.S… It’s a clear vote by the market in favor of riskier assets. It’s a step in the right direction and a positive for U.S. assets and U.S. economy,” Kenneth Broux, senior strategist Forex and rates at Societe Generale, was quoted as saying by Reuters.
Tensions on the geopolitical front also appeared to ease as a ceasefire between India and Pakistan continued to hold.
Market players now awaited the key US CPI inflation data that may provide further clues over the Federal Reserve’s monetary policy path.
Cleveland Fed President Beth Hammack said on Friday the US central bank required more time to determine how the economy responded to the Trump administration’s tariffs before taking the appropriate action on interest rates.
Spot Silver was last down 1.34% on the day to trade at $32.30 per troy ounce.
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