The post XAG/USD depreciates toward $30.50 due to risk-on sentiment appeared on BitcoinEthereumNews.com.

Silver prices face challenges due to a reduced demand for safe-haven assets following Trump’s election victory. The demand for riskier assets improves as markets assess the potential impacts of the proposed Trump policies. The dollar-denominated Silver struggles due to a stronger US Dollar and rising Treasury yields. Silver prices (XAG/USD) experiences a third consecutive day of declines, trading around $30.60 per troy ounce during the Asian session on Tuesday. The precious metals sector, including Silver, is facing pressure due to a reduced demand for safe-haven assets. Traders are increasingly shifting toward riskier assets as markets assess the potential impacts of US President-Elect Trump’s potential fiscal policies and monetary strategies. The possibility of tariffs being implemented early in Trump’s presidency could lead to inflation, which in turn may cause the Federal Reserve (Fed) to delay its expected easing measures in the coming year. As a result, the dollar-denominated Silver is also struggling amid a stronger Greenback and rising US Treasury yields. The US Dollar Index (DXY), which tracks the value of the US Dollar against six major currencies, is hovering near a four-month high at 105.70. Meanwhile, the yields on 2-year and 10-year US Treasury bonds are at 4.28% and 4.32%, respectively, at the time of writing. China’s recent stimulus measures have fallen short of investor expectations, undermining earlier hopes for industrial support in the largest manufacturing hub and negatively impacting the outlook for industrial metals across the board. This has put additional pressure on Silver, which has significant usage in electrification, particularly in solar panels. Last week, China announced a 10 trillion Yuan debt package aimed at easing local government financing pressures and boosting the economy. However, the package did not include direct economic stimulus measures, which many had hoped for. Meanwhile, Chinese-owned solar panel manufacturers have begun scaling back…

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Filed under: News - @ November 12, 2024 4:26 am