silver prices are experiencing a decline as the market reacts to the unfolding political landscape, particularly the rising prospects of former President Donald Trump’s candidacy. The latest developments indicate a competitive race between Trump and Vice President Kamala Harris, with early exit polls providing Trump with a notable advantage. This renewed confidence in a potential “Trump trade” has shifted market sentiment, exerting downward pressure on safe-haven metals such as silver .
During the Asian trading session on Wednesday, the price of silver (XAG/USD) hovered around $32.10 per troy ounce, struggling to maintain its recent gains. The strength of the US Dollar has been a significant factor contributing to this decline, bolstered by favorable results for Trump in the electoral race, which has encouraged investors to opt for assets perceived as less risky.
Specific exit poll data shows promising results for Trump in states like Wisconsin, where he leads with 56% of the vote against Harris’s 42.5%, based on a fraction of the votes counted. In North Carolina, the race is notably close, while in Michigan, Harris’s lead is narrowing as more votes are tallied. In Georgia, early reports also suggest a slight edge for Trump, which could influence the allocation of 16 crucial electoral votes.
Moreover, rising US Treasury yields are adding to the pressure on non-yielding assets like silver . The current yields for the 2-year and 10-year Treasury bonds stand at 4.23% and 4.34%, respectively. Investors are closely monitoring the potential outcomes in Congress, as a significant shift in control could lead to changes in fiscal policies that would likely impact broader market dynamics. This confluence of political developments and economic indicators collectively shapes the market sentiment surrounding silver and other safe-haven assets.
