US trade policy triggered a sell-off in silver market

Donald Trump's import tariffs continue to shock global markets. The US President's aggressive trade policy has pushed silver prices down to a 5-year low against gold. Both precious metals experienced a sell-off last week amid new statements by the US President, Kitco News reports.

Actively spreading US import duties increases recession fears among investors. As a result, key industrial metals are under pressure. Silver is in great demand in the manufacturing sector, so its price last week fell below $30.

Gold prices also declined during the first week of April, but the precious metal managed to stay above the level of $3,000 per ounce. Chris Vecchio, an expert of Tastylive.com, explains such dynamics by the asset's attractiveness in times of economic instability.

Zaye Capital Markets investment director Naeem Aslam notes that the high ratio of gold to silver may signal that the latter is undervalued. The expert believes that if the economy stabilizes or recession fears diminish, the white metal prices could recover.