Silver Pulls Back from Multi-Year Highs as US-China Trade Optimism Eases Safe-Haven Demand

Silver Pulls Back from Multi-Year Highs as US-China Trade Optimism Eases Safe-Haven Demand

Silver Loses Momentum After Multi-Decade Highs

Silver (XAG/USD) prices are down on Wednesday as the metal retreats from multi-year highs. The correction follows signs of easing geopolitical tensions between the United States and China, prompting investors to unwind bullish positions amid overbought technical conditions.

After testing levels last seen in February 2012, Silver is now consolidating above the $36.00 psychological support level, with the Relative Strength Index (RSI) at 67, signaling continued but weakening bullish momentum.

US-China Trade Talks Shift Market Sentiment

Recent high-level trade discussions in London between US and Chinese delegations concluded with a preliminary framework agreement, marking a potential turning point in bilateral trade relations.

US President Donald Trump stated:

"We've made real progress with China. It's about fairness, and we're close to something that could work for both countries. I won't sign anything weak."

Chinese Vice Premier He Lifeng echoed the sentiment, emphasizing the importance of "stable and long-term trade and economic ties."

This thaw in US-China relations has dampened safe-haven demand for precious metals like Silver, leading to a short-term price retracement.

Technical Outlook for XAG/USD

Silver remains elevated on the longer-term chart, but with RSI close to overbought territory, a continued pullback remains likely unless renewed geopolitical or inflationary risks emerge. Key support is at $36.00, while resistance lies near the recent peak around $37.60.

Internal Linking Suggestions for Tredu.com:

• Live Silver Price Chart (XAG/USD)
• US-China Trade News Tracker
• Precious Metals Market Analysis
• Technical Indicators Explained: RSI

Key Takeaways:

• Silver retreats from 13-year highs amid improving US-China relations.
• RSI at 67 signals overbought conditions and potential short-term correction.
• Traders await confirmation of trade framework details for future direction.
• XAG/USD holds above key $36.00 level but faces resistance near recent highs.