Silver Slides Below $92 as Safe-Haven Demand Fades Prices Retreat After Record Highs

Silver (XAG/USD) fell sharply during Thursday’s Asian session, slipping to around $91.80 and shedding nearly 0.9% on the day. The pullback comes after the metal touched record highs, with traders locking in profits amid a softer risk backdrop.


Trump Eases Tariff Threats, Risk Appetite Improves

The decline in silver was driven largely by reduced demand for safe-haven assets after US President Donald Trump rolled back threats to impose tariffs on eight countries over their stance on Greenland. Trump said outlines of a deal had been reached with NATO regarding the island’s future, easing fears of an escalation in trade tensions and lifting broader market sentiment.


Metals Lose Shine as Stocks Rally

Market participants noted that easing tariff rhetoric boosted equities and erased much of the recent gains in precious metals. RJO Futures senior market strategist Bob Haberkorn said the announcement on European tariffs pushed stocks higher and put renewed pressure on metals, including silver.


Fed Outlook Weighs on Non-Yielding Assets

Silver also faced headwinds from expectations that the US Federal Reserve will keep interest rates unchanged through the current quarter, and possibly until Fed Chair Jerome Powell’s term ends in May. The prospect of higher-for-longer rates tends to support the US Dollar, reducing the appeal of non-interest-bearing assets such as silver.


Europe-US Tensions Remain a Wild Card

Despite the easing tone, caution persists. Germany’s Finance Minister Lars Klingbeil warned against premature optimism following Trump’s tariff retreat, while US Treasury Secretary Scott Bessent acknowledged frustration among US allies over Washington’s tactics. Any renewed escalation in trade frictions between the US and Europe could quickly revive safe-haven flows, potentially offering fresh support to silver prices.