Silver prices fell in European trade on Monday on track for the third straight loss away from two-week highs on profit-taking, amid concerns about Chinese growth and weaker silver demand. 

The white metal’s losses were stymied by the US dollar's decline against major rivals amid mounting concerns about the US economy ahead of inflation data this week.

Prices

Silver prices fell 0.6% today to $32.33 an ounce, with a session-high at $32.67.

On Friday, silver lost 0.35% on profit-taking away from two-week highs at $32.77.

Silver tumbled 4.5% last week, the sixth weekly loss in seven weeks, and the largest in 2025.

The huge gains came as both the dollar and US treasury yields swooned, while Chinese stimulus hopes rebounded.

Deflationary Pressures

Recent data showed China’s consumer prices slowed down to 13-month slows in February, while producer prices contracted for the 30th month in a row.

Such deflationary pressures will no doubt impact economic activities in China and actual demand on precious metals. 

US Dollar

The dollar index fell 0.35% on Monday on track for the sixth loss in a row, plumbing four-month lows at 103.46 against a basket of major rivals.

A weaker dollar makes greenback-denominated metals cheaper to holders of other currencies. 

Investors are concerned that Donald Trump’s aggressive trade policies would hurt growth both in the US and globally.

Gold prices rose in European trade on Monday to near a week high, while holding its ground above $2900 with the dollar weakening.

Now investors await US inflation data for February, expected to offer fresh pricing for the odds of a Fed rate cut in March.

The Price

Gold prices rose 0.35% today to $2918 an ounce, with a session-low at $2896.

Gold lost 0.1% on Friday on profit-taking away from a week high at $2930.

Gold rallied 1.8% last week, the ninth weekly profit in two and a half months on haven demand.

The Dollar

The dollar index fell 0.35% on Monday on track for the sixth loss in a row, plumbing a four-month trough at 103.46 against a basket of major rivals.

A weaker dollar makes greenback-denominated gold futures cheaper to holders of other currencies.

Investors are concerned that Donald Trump’s aggressive trade policies would hurt growth both in the US and globally.

US Rates

Fed Chair Jerome Powell said it remains to be seen whether Trump’s tariff plans will be inflationary. 

According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in March stood at just 3%.

Now investors await important US inflation data this week to gather more clues.

The SPDR

Gold holdings at the SPDR Gold Trust fell 4.3 tons on Friday, the third drop in a row to a total of 894.34 tons, the lowest since February 20.

The euro rose in European trade on Monday against a basket of major rivals, maintaining gains for the second session against the dollar, and about to touch four-month highs after marking the best weekly performance in 16 years. 

Following the European Central Bank’s latest policy meeting, the odds of a rate cut in April declined as traders now await more data and clues.

The Price

The EUR/USD pair rose 0.4% today to $1.0871, with a session-low at $1.0827.

The euro rose 0.45% on Friday against the dollar, marking the fourth profit in five days, and hitting a four-month high at $1.0888 following weak US jobs data.

The euro rose 4.4% last week against the greenback, the best weekly performance since March 2009.

The gains come amid record fiscal spending plans in Germany, which boosted inflation forecasts and might force the European Central Bank to tighten its policies once more to face inflationary pressures.

European Rates

The European Central Bank cut main borrowing rates by 25 basis points to 2.5% as expected, noting in its statement that inflation has slowed down in line with forecasts.

The ECB now expects inflation to hit 2.3% this year, before slowing down to 1.9% in 2026, before rising to 2% in 2027.

The ECB reduced forecasts for eurozone economic growth in 2025 to 0.9%, and in 2026 to 1.2%, and in 2027 to 1.3%. 

ECB President Christine Lagarde said the decision to cut interest rates was in line with economic developments and data in the eurozone.

She noted that inflation started to fall considerably in line with forecasts, and will likely settle at the targets sustainably. 

Reuters reported that the ECB policymakers expect a pause in rate cuts in April before embarking on another round of cuts.

The odds of an ECB rate cut in April is now less than 50%, compared to a 60% chance next week.

The yen rose in Asian trade on Monday against a basket of major rivals, resuming gains against the dollar and about to touch five-month highs on risk aversion as traders buy up safe havens. 

The gains are boosted by a drop in US 10-year treasury yields following weak labor data, which bolstered the case for a Fed rate cut in the first half of the year.

The Price

The USD/JPY pair fell 0.55% today to 147.09 yen per dollar, with a session-high at 147.94.

The yen closed down 0.1% on Friday against the dollar, marking the first loss in three days on profit-taking away from a five-month high at 146.94.

The yen rallied 1.7% last week, marking the second weekly profit in three weeks as US yields dropped. 

Safe Havens

Most global stock markets lost ground amid mounting concerns about the stability of the US economy due to Donald Trump’s aggressive trade policies, in turn hurting the risk appetite.

Investors are worried about slower US growth after aggressive tariffs on major trade partners, while recent labor data and government layoffs raised more concerns. 

President Trump said during a Fox News interview that the US is undergoing a transition phase, with return of wealth to the US through trade and economic policies, including tariffs to boost local industry.

Japanese Rates

The odds of a Bank of Japan interest rate hike in March stood at 65%.

Now investors await more data on Japanese inflation, unemployment, and wages.

US Yields

US 10-year treasury yields fell 1.1% on Monday, pressuring the greenback, amid growing concerns about US growth in the first quarter with the economy adding less jobs than expected in February.

Slower US growth would bolster the odds of a Fed rate cut in the first half of the year.

According to the Fedwatch tool, the odds of a 0.25% Fed rate cut stood at just 3%.