- Silver prices fall as easing trade-war tensions dampen safe-haven demand for precious metals.
- President Trump emphasized positive developments in trade talks and affirmed recent discussions with Chinese President Xi Jinping.
- Silver priced in US Dollars is becoming less attractive as the US Dollar strengthens, driven by increasing optimism about the improvement of US-China trade relations.
Silver (XAG/USD) Retreats During Asian Session
Silver prices (XAG/USD) are slipping after posting gains the previous day, trading around $33.00 per troy ounce during Tuesday’s Asian session. The safe-haven appeal of precious metals, including Silver, continues to diminish as concerns over a potential trade war ease.
Stronger US Dollar Weighs on Silver Appeal
Dollar-denominated Silver is losing ground as the US Dollar (USD) strengthens, making the metal more costly for investors using other currencies. The USD’s momentum is supported by growing optimism surrounding US-China trade relations.
Trade War Tensions Ease on Positive Developments
Recent statements from US President Donald Trump suggested a willingness to roll back tariffs on Chinese goods. Meanwhile, China announced exemptions for certain US imports — moves that have boosted hopes for a resolution to the prolonged trade standoff between the world’s two largest economies.
US Officials Highlight Ongoing Communication with China
US Treasury Secretary Scott Bessent confirmed during a CNBC interview on Monday that all branches of the US government are maintaining active dialogue with China. He highlighted positive tariff proposals from major US trading partners, and China’s recent exemptions as signals of easing tensions.
Focus on US Economic Data for Policy Clues
President Trump also noted progress in negotiations and continued communication with Chinese President Xi Jinping. In related news, The Wall Street Journal reported that Trump is aiming to reduce the effects of automotive tariffs by minimizing overlapping duties on foreign vehicles and cutting tariffs on imported auto parts.
Market participants are now closely monitoring several key US economic reports this week, including the preliminary Q1 GDP, March PCE inflation data, and April Nonfarm Payrolls. These releases are expected to offer fresh insights into the Federal Reserve’s potential policy path and the broader US economic outlook.
