Silver Rallies on Trade War and Germany Recession Concerns

Metals are trading positive on Tuesday as investors are digesting economic data in Germany and the news about the trade war between the US and China.

Silver is extending its rally on Tuesday after breaking above the 17.75 area on Monday. Today, Silver jumped to trade as high as 18.00 early in the day, its highest level since September 2017.

The Gross Domestic Product in Germany declined 0.1% in the second quarter, according to the Statistisches Bundesamt Deutschland Office. Year over year, German GDP was unchanged, while the GDP WDA figure rose 0.4% in the last twelve months.

German numbers were in line with expectations, but it is a confirmation that Germany could be facing a recession in the next few months.

Meanwhile, the Yuan has declined again, and after its ninth consecutive day of losses against the US Dollar, it is now at its lowest level since February 2008. The dollar came under additional pressure versus the yen as a decline in U.S. The yen rose around 0.4% in Asian trading to 105.76 per dollar.

Benchmark 10-year U.S. Treasury yields fell to 1.5249% in Asia. The yield curve was inverted as 2-year yields traded at 1.5326%, which is commonly considered a sign of an impending economic recession.