Silver (XAG/USD) maintained its upward momentum during the Asian session on Monday, trading around $36.00, even as stronger-than-expected U.S. employment data for May suggested economic resilience. Market attention now shifts to the anticipated U.S.-China trade discussions later in the day.
Rising geopolitical and economic uncertainty continues to bolster demand for safe-haven assets, offering support to silver prices. U.S. officials, including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, are scheduled to engage in trade talks with Chinese counterparts, with meetings set to take place in London.
Adding further support to silver is the sustained industrial demand—particularly from the solar energy sector. According to the Silver Institute, global silver supply in 2024 is estimated to be 15% below demand, with a continued deficit expected in 2025.
However, the robust U.S. employment data may strengthen the U.S. dollar and weigh on dollar-denominated commodities like silver. The report gives the Federal Reserve room to maintain a cautious stance as trade negotiations unfold. Federal Fund Futures now suggest a growing likelihood that the Fed will hold interest rates steady through at least the September policy meeting.
