Silver Prices Drop Sharply Following Trump's Tariff Delay on Critical Minerals

Overview Silver prices took a significant hit on Thursday, dropping sharply as investors decided to cash in on profits. This decline followed a period of record highs, which had been fueled by a strong rally in the previous sessions.

Key Developments

• In international markets, silver prices plummeted by as much as 7.3%, while gold also saw a decline. The white metal faced selling pressure after surging over 20% in just four sessions.
• Spot silver was trading 3.43% lower at $89.9920 an ounce, after reaching an all-time high of $93.57 earlier in the day.
• US President Donald Trump announced that the administration would seek bilateral agreements to ensure adequate supplies of critical minerals, as reported by Bloomberg. He also suggested the possibility of imposing price floors on imports instead of percentage-based tariffs, aiming to bolster supply chains without ruling out future levies.

Business Impact This downturn in silver prices reflects a broader market reaction to the US's tariff delay on critical minerals, which has eased some of the safe-haven demand for precious metals. Investors are likely reassessing their positions in light of these developments.

Market Context The decline in silver and gold prices comes amid reduced concerns over US tariffs, which had previously driven prices up. The market's response indicates a shift in investor sentiment, as they navigate the implications of Trump's announcements.

Industry Context The precious metals market has been volatile, with recent highs driven by geopolitical tensions and economic uncertainties. The current pullback could signal a recalibration as traders digest the latest news from the US administration.

Looking Ahead Investors will be watching closely for further developments regarding US trade policies and their potential impact on commodity prices.