Silver extends losses amid de-escalating US–EU trade tensions

On Tuesday, silver prices dropped to $33.40 per troy ounce after two consecutive sessions of gains. The metal is depreciating as easing US–EU trade tensions reduce safe-haven demand, FXStreet reports.

On Sunday, American President Donald Trump decided to postpone the imposition of 50% tariffs on European imports. The following day, EU member state representatives agreed to hold negotiations with the US leader to resolve trade disagreements.

Nevertheless, silver may regain its footing. Traders' concerns are mounting over the potential expansion of the United States national debt following the possible approval of Donald Trump's tax bill. The legislation is expected to reach the Senate floor soon. According to FXStreet, this could fuel a rally in the metal's prices.

Meanwhile, a weaker dollar could also exert upward pressure on silver prices, as the bullion becomes more affordable for foreign buyers.