Silver Prices Flirt With $17.00 Level, Trump Threatens Further TariffsSilver is showing slight gains on Wednesday and has tested the $17.00 for the first time this week.
Silver has posted slight gains in Wednesday trade. In the North American session, the metal is trading at $16.89, up $0.07 or 0.42% on the day.
Silver Pushes up to $17.00
After a quiet spell this week, silver is showing some upward movement on Wednesday and tested the symbolic 17.00 line. Silver has been sensitive to developments in the trade talks between the U.S. and China, and the gains on Thursday could reflect investor uneasiness after combative remarks by President Trump in New York on Wednesday. Trump threatened to escalate the trade war with China, saying that tariffs would be raised “very substantially” if the sides failed to reach an agreement. At the same time, Trump added that a “Phase 1” interim deal could “happen soon”, and his tough talk could be aimed at his electoral base in an election year. Last week, investor optimism soared on a Chinese report that the sides had agreed to phase out tariffs, and safe-haven silver was hit hard, falling 7.1 percent.
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Investors Eye Hong Kong Violence
The civil unrest continues in Hong Kong, as violent demonstrations continue. Protesters are demanding more political freedom, which could unleash a harsh response from the Chinese regime. If the violence continues, there is a danger that China will respond more forcefully and send in troops to suppress the demonstrations. This could sour investor risk appetite and boost precious metals such as silver.