XAG/USD Recovers Intraday Losses Amid Caution on Trump’s Tariff Threats
Silver price (XAG/USD) recovers its intraday losses and turns flat around $33.00 in North American trading hours on Wednesday. The white metal bounces back as its safe-haven appeal remains firm amid fears of a global economic slowdown from potential tariffs by United States (US) President Donald Trump.
President Trump threatened to impose 25% tariffs on automobiles, pharmaceuticals and semiconductors and that tariffs could increase substantially next year. Trump added that some tariffs could enacted by April, the same timeframe in which he has planned to unveil the reciprocal tariff plan too.
While Silver’s safe-haven demand has remained firm due to Trump’s tariff threats, its upside could remain capped due to optimism over the Russia-Ukraine truce. Trump said on Tuesday that he discussed with Russia in Riyadh about ending the war in Ukraine and confirmed to have more talks along with leaders from Ukraine and Europe. More positive developments in Russia-Ukraine peace talks would ease the safe-haven premium of the Silver price.
Meanwhile, the US Dollar (USD) trades higher ahead of the release of the Federal Open Market Committee (FOMC) minutes of the January policy meeting, which will be published at 19:00 GMT. Signs of the Federal Reserve (Fed) holding interest rates at their current levels for longer would strengthen the US Dollar. Such a scenario bodes poorly for the Silver price.
Source: Fxstreet