Silver Price Holds Near $36.60 as US-China Trade Eases, CPI Data in Focus

Silver Price Holds Near $36.60 as US-China Trade Eases, CPI Data in Focus

Silver Stabilizes After Touching 13-Year High

Silver (XAG/USD) remains relatively steady during Wednesday’s Asian session, quoting near $36.60 per troy ounce. The grey metal hit a 13-year high of $36.89 earlier this week on Monday but has since pulled back slightly, reflecting the shifting sentiment in global markets.

Safe-Haven Demand Wanes on US-China De-escalation

Silver, traditionally viewed as a safe-haven asset, may see diminished demand as US-China trade tensions begin to ease. On Tuesday, US Commerce Secretary Howard Lutnick confirmed that both countries had agreed on a framework to implement the Geneva Consensus, which could resolve ongoing trade issues.

Negotiators are particularly focused on reaching agreements related to rare earth mineral and magnet exports, key commodities in both economies' strategic sectors.

CPI Data May Add Volatility

Investors are also anticipating the release of the US Consumer Price Index (CPI) for May, due later on Wednesday in the North American session. The market expects a 2.5% year-over-year increase, which could influence Federal Reserve rate expectations and impact precious metal valuations broadly.

China’s Position: Awaiting Leadership Approval

China's Vice Commerce Minister Li Chenggang described ongoing dialogue with the US as “reasonable and frank.” He confirmed that China would submit the framework to leadership before implementation, meaning full resolution could still take time.

Outlook: Silver Supported but Vulnerable to Sentiment Shifts

While Silver prices remain elevated amid broader market uncertainty, the easing of geopolitical tensions and upcoming economic data releases could introduce downside pressure. Traders should monitor CPI figures and further developments in US-China negotiations for clues on the next directional move.

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