Spot Silver lost ground on Wednesday, pressured by a firmer US Dollar and higher Treasury yields, in the wake of fresh tariff threats from US President Donald Trump.
He warned the US would impose a 50% tariff on copper imports and introduce levies on semiconductors and pharmaceuticals.
Yesterday Trump also reiterated a threat to impose 10% tariffs on BRICS nations, one day after informing 14 countries of higher tariffs set to take effect on August 1st.
The US Dollar Index was holding near a two-week high, while the yield on benchmark 10-year US Treasuries was at a three-week high.
Higher bond yields increase the opportunity cost of holding Silver, which pays no interest.
Market focus now sets on the minutes of the Federal Reserve’s June meeting, due later today, for clues over US economic outlook and monetary policy trajectory.
Market players no longer expect a rate cut by the Federal Reserve in July. Markets are now pricing in only two 25 bps rate cuts by year-end.
Those expectations were also reinforced by stronger-than-expected US jobs data from last week.
Spot Silver was last down 0.52% on the day to trade at $36.57 per troy ounce.
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