Silver Price Drops Below $33.00 as US-EU Trade Tensions Ease

Silver Price Forecast: XAG/USD Plunges Through $33.00 on Eased US-EU Trade Tensions

Silver (XAG/USD) dropped sharply during Tuesday’s North American session, plunging close to 2% and trading around $32.80. The retreat came as safe-haven demand for precious metals waned following signs of easing trade tensions between the United States and the European Union.

The decline in geopolitical risk was sparked by U.S. President Donald Trump’s decision to delay the implementation of 50% tariffs on EU imports from June 1 to July 9. This delay has fueled optimism that both sides are moving toward a negotiated resolution, softening risk sentiment and diminishing the appeal of defensive assets like silver.

At the same time, the U.S. Dollar (USD) is gaining traction amid renewed hopes for a US-EU trade agreement. The Dollar Index (DXY), which measures the currency against a basket of six major peers, climbed toward 99.35 after bouncing from a five-week low of 98.70 seen on Monday.

Additionally, reports indicate that European officials have begun asking companies to disclose their investment plans in the U.S., signaling preparations for deeper economic collaboration.

From a technical standpoint, the stronger USD continues to pressure dollar-denominated assets like silver, making them more expensive for non-dollar investors. With silver breaking below the key psychological level of $33.00, further downside could be seen unless sentiment shifts or fresh risk-off drivers emerge.