Silver prices (XAG/USD) retreated during Tuesday’s Asian trading session, falling to around $33.00 per troy ounce after posting gains the previous day. The pullback comes as easing US-China trade tensions continue to erode safe-haven demand for precious metals.
The appeal of dollar-denominated assets like silver has also diminished due to a strengthening US Dollar, which makes the metal more expensive for holders of other currencies. The Greenback has been buoyed by growing market optimism that the prolonged trade conflict between the United States and China may be nearing resolution.
US President Donald Trump recently indicated a willingness to roll back tariffs on Chinese imports, while Beijing responded by exempting certain American goods from its steep tariffs. These reciprocal gestures have raised hopes that both sides are serious about de-escalating trade tensions.
In an interview with CNBC on Monday, US Treasury Secretary Scott Bessent confirmed that multiple branches of the US government are maintaining active communication with Chinese counterparts. He also noted that several major trading partners have made “very good” proposals, and China’s latest tariff exemptions signal a possible step toward reconciliation.
President Trump underscored ongoing dialogue with Chinese President Xi Jinping, and The Wall Street Journal reported that the administration is aiming to soften the impact of automotive tariffs by avoiding overlapping duties and reducing levies on imported car parts.
Market participants are now closely watching a series of critical US economic indicators scheduled for release this week, including preliminary first-quarter GDP, March PCE inflation data, and April’s Nonfarm Payrolls report. These figures are likely to influence expectations around future Federal Reserve policy decisions and provide broader insights into the health of the US economy.
