XAG/USD Holds Below $33.00 As Risk Appetite Improves
Silver (XAG/USD) prices remain pressured after rising in the previous session, trading around $32.90 per troy ounce during Asian trading hours on Friday (21/2). Safe-haven metals such as Silver faced selling pressure as risk sentiment strengthened following US President Donald Trump’s announcement of potential progress in trade negotiations with China. Trump’s remarks helped ease market concerns over tariffs, and he expressed hope that Chinese President Xi Jinping might visit, while also discussing matters related to TikTok.
However, Silver found some support amid lingering trade and geopolitical uncertainties after Trump announced plans to impose 25% tariffs on imports of cars, semiconductors, and pharmaceuticals, rekindling fears of a wider global trade war.
Market concerns also increased as tensions escalated between Trump and Ukrainian President Volodymyr Zelensky. Trump called Zelensky a “dictator” following the Ukrainian leader’s criticism of US-Russian talks in Saudi Arabia, which did not involve Kyiv. Zelensky responded by saying Trump was “living in a disinformation chamber” controlled by Moscow, according to the BBC.
Meanwhile, US Federal Reserve officials signaled in January that they wanted to see further progress on inflation before cutting interest rates. Federal Reserve Board Governor Adriana Kugler said on Thursday that inflation still “has some way to go” before reaching the Fed’s 2% target, while St. Louis Fed President Alberto Musalem warned of potential risks of stagflation and rising inflation expectations, according to Reuters.
Source: FXStreet
