Silver price today: Silver falls, according to FXStreet data

Silver prices dipped on Tuesday, as indicated by FXStreet data. The precious metal traded at $65.88 per troy ounce, a decline of 0.55% from the previous day's $66.24. Silver's value has slipped by 7.33% since the start of the year. The Gold/Silver ratio, representing the quantity of Silver ounces required to match the value of one ounce of Gold, rose to 66.72 on Tuesday, up from 66.61 on Monday.

Silver is a sought-after metal among investors, often employed as a store of value and medium of exchange. While less favored than Gold, Silver can be used to diversify investment portfolios due to its intrinsic worth or as a potential hedge against high inflation. Investors can acquire physical Silver, including coins or bars, or trade it via Exchange Traded Funds, which mirror its price in global markets.

Silver's price fluctuations are influenced by various factors. Geopolitical turmoil or concerns of a severe recession can cause Silver prices to increase due to its safe-haven status, although to a lesser degree than Gold's. As a non-yielding asset, Silver typically appreciates when interest rates are low. Silver's price also depends on the US Dollar, as it is priced in dollars (XAG/USD).

A robust US Dollar tends to suppress Silver prices, whereas a weakening Dollar could drive prices higher. Other elements like investment demand, mining supply – Silver is far more abundant than Gold – and recycling rates can also impact prices. Silver is extensively utilized in industry, particularly in sectors like electronics or solar energy, owing to its exceptional electrical conductivity among metals, surpassing that of Copper and Gold.

A surge in demand for Silver can elevate prices, whereas a decline in demand can lower them. The performance of the US, Chinese, and Indian economies can also contribute to Silver price swings, as their industrial sectors utilize Silver in various processes; in India, consumer demand for the metal for jewelry plays a significant role in determining prices.

Silver prices typically mirror Gold's movements. When Gold prices rise, Silver usually follows, as they share a similar status as safe-haven assets. The Gold/Silver ratio can aid in assessing the relative valuation of both metals. Some investors may view a high ratio as an indication that Silver is undervalued or Gold is overvalued.

Conversely, a low ratio might suggest that Gold is undervalued relative to Silver. (An automated system was utilized to generate this report.) The FXStreet content team, composed of economic journalists and FX experts, creates and manages all content published on FXStreet. They present a purely journalistic perspective of the Forex market.

AUD/USD remained above 0.7200 in the Asian session on Tuesday, approaching its highest level since May 14. The US Dollar faces pressure as a Japanese Yen rally overshadows support from hawkish Federal Reserve predictions and geopolitical tensions. This, coupled with optimistic expectations for a further Reserve Bank of Australia rate hike later in the month, benefits the Australian dollar.

However, conflicting China trade balance data keeps the pair in check. USD/JPY is recovering from six-month lows of 152.89, testing 154.00 in European trading on Tuesday. Despite the attempts, upward movement remains limited as Japan's buoyant wage growth data and revised Q2 GDP bolster bets on a Bank of Japan rate hike next week, further strengthening the Japanese Yen.

Simultaneously, US Dollar selling persists despite hawkish Federal Reserve expectations and escalating geopolitical tensions, providing additional support to the pair. Gold retreated to the lower end of its daily range heading into the European session, yet it stays above the $4,400 mark amid a softer US Dollar. However, hawkish Federal Reserve predictions, along with persistent geopolitical uncertainties, offer some respite to the safe-haven dollar and maintain a ceiling on the non-yielding metal.

The oil market may appear more tranquil than it was a few months ago, but diesel presents a contrasting narrative. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over West Texas Intermediate, recently surpassed $100 per barrel for the first time, reaching an intraday record of just over $102.00.