XAG/USD steadies near $32.00 as safe-haven demand increases
Silver price (XAG/USD) is pausing its four-day decline, trading near $32.10 during the Asian session on Monday. The precious metal is regaining ground as ongoing uncertainty around US-China trade talks fuels safe-haven demand.
On Friday, China’s Commerce Ministry said it is considering a proposal from the United States (US) to resume trade discussions. This comes after US President Donald Trump stated that negotiations were underway, although he clarified that no talks with Chinese President Xi Jinping are scheduled for this week.
The US Dollar (USD) has also weakened, boosting the appeal of dollar-denominated assets like Silver for holders of other currencies. The Greenback is under pressure, partly due to escalating trade tensions, with Trump announcing plans for a 100% tariff on foreign-produced films.
However, Silver’s industrial demand prospects are clouded by deteriorating global economic data. The US economy unexpectedly contracted by 0.3% in Q1—its first decline in three years—while China’s NBS manufacturing PMI dropped to a 16-month low, driven by the sharpest fall in export orders since 2022.
Market focus now shifts to the upcoming US Federal Reserve policy meeting, where rates are widely expected to remain unchanged despite Trump’s renewed push for a cut. Investors are also watching Monday’s US ISM Services PMI release for insight into the economic outlook.
Source : Fxstreet
