Silver (XAG/USD) regained its footing on Wednesday, trading around $32.70 per troy ounce during Asian hours, as the metal partially retraced losses from the previous session. The uptick in silver prices came despite growing optimism surrounding the Federal Reserve’s independence, which somewhat dampened investor enthusiasm for the precious metal.
US President Donald Trump reassured markets by clarifying that he has no plans to remove Federal Reserve Chair Jerome Powell, stating, “The press runs away with things. No, I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates.”
Market sentiment also received a boost from US Treasury Secretary Scott Bessent, who described the ongoing trade dispute with China as “unsustainable” and expressed optimism that a resolution was possible. While formal negotiations have not yet begun, Bessent indicated that a deal might be within reach, as revealed by sources at a private JP Morgan Chase & Co. event in Washington.
Despite these positive developments, silver continues to find support, particularly with US-China trade talks showing signs of progress. President Trump confirmed that while steep tariff hikes—such as those reaching 145%—would not occur, tariffs would not be entirely lifted either. Given silver’s importance in industries like electronics, solar energy, and automotive manufacturing, any improvement in US-China trade relations could lead to a surge in demand, particularly from China, a global manufacturing leader.
