XAG/USD trades lower near $33.00 due to US-China trade talks
Silver (XAG/USD) retreated on Wednesday during Asian trading hours, hovering around $33.00 per troy ounce after two consecutive days of gains. The decline comes as safe-haven demand weakens following news that US and Chinese officials will meet this week to discuss trade, raising hopes of de-escalation.
In a notable development, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are scheduled to meet Chinese Vice Premier He Lifeng in Geneva over the weekend. This marks the first high-level dialogue since the US imposed tariffs that triggered a global trade conflict. China’s Ministry of Commerce confirmed Beijing's willingness to engage, citing consideration of US proposals, global sentiment, and domestic interests.
The stronger US Dollar is also weighing on dollar-denominated Silver, as investors grow cautious ahead of the Federal Reserve’s (Fed) interest rate decision later in the North American session. A firmer Greenback reduces Silver’s appeal for holders of other currencies.
Earlier gains in Silver had been driven by investor reaction to President Donald Trump’s latest trade remarks. While he ruled out talks with Chinese President Xi Jinping this week, he hinted at a possible rollback of the 145% tariff on Chinese goods. However, his announcement of new 100% tariffs on foreign films and possible levies on pharmaceuticals has added to market uncertainty.
The Federal Reserve is widely expected to leave interest rates unchanged, with markets closely monitoring Chair Jerome Powell’s comments amid ongoing trade-related volatility and pressure from President Trump to cut rates.
Source : Fxstreet
