XAG/USD hovers around $36.50 near 13-year highs
Silver price (XAG/USD) halts its three-day winning streak, trading around $36.50 per troy ounce during the Asian hours on Tuesday. Prices of precious metals, including Silver, receive downward pressure from weakened safe-haven demand amid rising hopes for a cooldown in the United States’ (US) latest broad tariff tensions with China.
Treasury Secretary Scott Bessent mentions discussions held on Monday as a “good meeting.” At the same time, Commerce Secretary Howard Lutnick noted them as “fruitful,” increasing expectations of progress in improving relations between the two countries.
Officials from the US and China are expected to meet again on the second day on Tuesday at 10.00 a.m. in London. Trade talks will continue as the world’s two largest economies look to ease tensions over shipments of technology and rare earth elements, per Bloomberg.
The non-yielding Silver gained support, possibly driven by Citigroup’s forecasts on Monday, expecting the Fed may deliver a 25 basis point rate cut each in September, October, and December. The firm also expects the central bank to cut 25 basis points each in January and March 2026.
However, the recent stronger jobs data from the United States (US) raised the expectations of the Federal Reserve (Fed) keeping its benchmark interest rate unchanged at its next two monetary policy meetings. Traders await the US Consumer Price Index (CPI) inflation, scheduled to be released on Wednesday, seeking fresh insights into the Federal Reserve's monetary outlook.
Source : Fxstreet
