Silver prices fell as global trade tensions eased

On Thursday, silver prices dropped below $32 per ounce, erasing the previous session's gains. Easing global trade tensions reduced demand for safe-haven assets. This pullback followed productive US-China negotiations over the weekend, where both parties agreed to temporarily reduce import tariffs to 30% and 10% respectively for 90 days, according to Trading Economics.

This development alleviated market concerns about the prolonged trade dispute between Washington and Beijing. However, uncertainty persists regarding what follows after the agreement expires.

The reduction in geopolitical risk has prompted traders to recalibrate expectations for Federal Reserve monetary easing. Market participants now anticipate the US central bank will cut rates later this year. This shift negatively impacted silver prices, Trading Economics notes.

Nevertheless, April's lower-than-expected US inflation figures provided some support to precious metals. A weaker dollar enhanced silver's appeal to foreign investors.