Prime Business Africa
Silver prices fell sharply on Tuesday, retreating from last week’s record highs as investors took profits following a rapid rally driven by tight supply conditions and macroeconomic tailwinds.
The pullback comes as broader risk appetite improved, fueled by easing US-China trade tensions and signs of progress in resolving the US government shutdown.
Join our WhatsApp ChannelPresident Donald Trump stated he expects to reach a “fair” trade agreement with Chinese President Xi Jinping during their upcoming meeting in South Korea, helping calm markets. Investors now turn their focus to Friday’s key US inflation print, which could shape expectations ahead of next week’s anticipated Federal Reserve rate cut.
On the bright side, ETP holdings remain robust at 1.13 billion ounces and industrial demand continues to provide a floor.
According to Bas Kooijman, the CEO and Asset Manager of DHF Capital in South Africa, “The global deficit is still projected at 117.6 million ounces for 2025, underscoring continued structural tightness despite near-term volatility.”
READ ALSO: Silver Declines Slightly as Investors Take Profits, Outlook Remains Positive
