- Silver prices retreat to around $38.10 during Monday’s Asian trading session.
- Traders are keeping close tabs on updates regarding US-China trade negotiations before looming deadlines.
- Increased expectations of Federal Reserve rate cuts might help mitigate silver’s losses.
On Monday, Silver Price (XAG/USD) is set to break a six-day winning streak as it encounters selling pressure, dipping near $38.10. The current optimism surrounding the US economy, along with a hopeful outlook on the US-China trade ceasefire, seems to weigh on safe assets like silver.
Market participants are particularly interested in the ongoing trade discussions between the world’s two largest economies, especially as deadlines near to prevent higher tariff impositions. Recently, US Secretary of Commerce Howard Lutnick indicated that President Donald Trump might extend the trade deadline by an additional 90 days.
Moreover, US trade representative Jamieson Greer mentioned that both countries are actively “working” on these extensions. Positive news in this realm has had a dampening effect on silver’s value. However, any signs hinting at renewed trade tensions could potentially boost silver’s appeal, as traders often seek safe-haven assets during times of rising uncertainty.
This week, attention will also shift towards US inflation data expected later on Tuesday. The results could shed light on the Federal Reserve’s interest rate strategy. Should inflation signals prove milder than expected, this could increase the chances of earlier Fed rate cuts, potentially lifting silver prices. A lower interest rate might lessen the opportunity cost associated with holding silver, thus supporting this non-yielding metal.
