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Silver price (XAG/USD) attracts some sellers to around $93.60 during the Asian trading hours on Tuesday. The white metal edges lower amid some profit taking after reaching a fresh record high in the previous session. The safe-haven demand might help limit Silver’s losses in the near term. 

US President Donald Trump on Saturday stated that he would slap an additional 10% import tariff from February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the United Kingdom (UK) until the United States (US) is allowed to buy Greenland. 

French President Emmanuel Macron reportedly asked the European Union (EU) to activate its “trade bazooka.” This measure could block some of America’s access to EU markets or impose export controls, among a broader list of potential countermeasures. The threat by Trump to impose fresh tariffs on eight European countries opposed to his proposed takeover of Greenland could boost traditional safe-haven assets, benefiting the Silver price. 

On the other hand, the US Federal Reserve (Fed) is expected to hold the interest rate steady at its January policy meeting. Markets have priced in nearly a 5% chance of a Fed rate cut later this month, according to the CME FedWatch tool. The view that the US central bank can keep interest rates higher for longer generally lifts the US Dollar (USD) and weighs on the non-interest-bearing assets like Silver. 

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