Silver breaks below $33.00 as safe-haven demand weakens
Silver price (XAG/USD) continues to lose ground for the second straight day, hovering around $32.80 per troy during Asian trading hours on Monday. The precious metal faces pressure as improving trade relations between the United States (US) and China diminish its safe-haven appeal.
On Friday, reports indicated that China had exempted certain US imports from its steep 125% tariffs, raising hopes that the long-running trade dispute between the world’s two largest economies could be nearing a resolution. Further boosting sentiment, US Agriculture Secretary Brooke Rollins said on Sunday, according to Reuters, that the Trump administration is holding daily discussions with China on tariffs.
However, conflicting signals persist. Reuters cited a Chinese embassy spokesperson on Friday, who firmly denied any ongoing negotiations, stating, "China and the US are not having any consultation or negotiation on tariffs." The spokesperson also urged Washington to "stop creating confusion." In addition, a Beijing official reiterated on Thursday that no "economic and trade negotiations" are underway and emphasized that the US must "completely cancel all unilateral tariff measures" to reopen talks.
Meanwhile, the US Dollar (USD) strengthened, weighing further on dollar-denominated commodities like Silver. The US Dollar Index (DXY), which tracks the USD against a basket of six major currencies, rose for the second consecutive session, trading near 99.70 at the time of writing. The Federal Reserve (Fed) remains in a blackout period ahead of its May 7 Federal Open Market Committee (FOMC) meeting.
Looking ahead, traders are focused on several major US economic releases this week, including the preliminary Q1 GDP report, March PCE inflation figures, and April jobs data. These indicators could provide critical clues about the Fed's next policy moves and the broader economic outlook.
Source: Fxstreet
