Silver prices slipped below $33 on Monday, extending last week’s losses as a shift in market sentiment reduced the appeal of traditional safe-haven assets. A combination of improving economic indicators and easing geopolitical tensions pressured XAG/USD, pushing investors toward riskier assets.
The decline came as stronger US economic data and signs of stabilization in US-China relations encouraged a broader move into equities and higher-yielding investments. The weakening demand for safe-haven metals like silver and gold reflected growing confidence that the global economy could avoid a sharp slowdown.
Traders noted that silver had recently benefited from fears of a prolonged downturn and geopolitical instability, but those tailwinds have started to fade. “The market’s risk appetite is back, and that’s pulling money out of defensive plays like silver,” one analyst commented. Spot silver fell as much as 1.2% during the session before stabilizing just above $32.80.
Adding to the downward pressure, the US dollar remained firm against major currencies, further weighing on silver by making it more expensive for holders of other currencies. A stronger dollar often inversely impacts the demand for commodities priced in dollars, particularly precious metals.
Looking ahead, investors will watch upcoming US inflation and employment data for clues on the Federal Reserve’s next moves. Analysts say silver could face further headwinds if economic momentum continues to build and safe-haven demand remains subdued.
