XAG/USD corrects as White House softens stance on US-China trade relations
Silver price (XAG/USD) retraces to near $33.30 during North American trading hours on Thursday from an almost three-week high of $33.70 posted earlier in the day. The white metal corrects as investors become hopeful of significant de-escalation in trade war between the United States (US) and China.
Investors’ confidence on normalizing trade relations between the world’s two largest powerhouses increased after US President Donald Trump assured of making a deal with Beijing. Discussions with Beijing are going well, and I think that we will reach a deal,” Trump said on Tuesday.
Additionally, US Treasury Secretary Scott Bessent has signaled that both nations can reduce additional tariffs imposed recently. “I don’t think either side believes that the current tariff levels are sustainable, so I would not be surprised if they went down in a mutual way,” Bessent said on Wednesday.
A report from the Wall Street Journal (WSJ) showed on Wednesday that the White House can lower additional import duties roughly between 50%-65%.
Meanwhile, China has given ultimatum to the US to “completely cancel all unilateral tariff measures” if it wants trade talks, according to a spokesperson from Chinese commerce ministry, Financial Times (FT) reported.
Positive comments from Washington for resolving trade disputes between the US and China have diminished fears of a global economic turmoil. Theoretically, the scenario weighs on the safe-haven demand of the Silver price. However, improving relations between them increase the demand of Silver as industrial metal.
Silver has application in various industries, such as Electric Vehicles (EV), electronic alliances, power and cables, mining etc.
Source : Fxstreet
