Advertisements

Silver (XAG/USD) Falls Amid Easing Safe-Haven Demand and Stronger Dollar

by Daisy

Silver (XAG/USD) saw a decline on Wednesday during Asian trading hours, retreating to around $33.00 per troy ounce after two consecutive days of gains. The pullback comes as safe-haven demand wanes, fueled by news that US and Chinese officials will meet this week to discuss trade, sparking optimism for a potential easing of tensions.

In a significant development, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are set to meet with Chinese Vice Premier He Lifeng in Geneva this weekend. This marks the first high-level talks since the US imposed tariffs that escalated the global trade conflict. China’s Ministry of Commerce has expressed willingness to engage in discussions, indicating a consideration of US proposals, global market sentiment, and domestic priorities.

Advertisements

The stronger US Dollar is also exerting pressure on dollar-denominated silver, as investors remain cautious ahead of the Federal Reserve’s interest rate decision later in the North American session. A stronger Greenback diminishes the appeal of silver for holders of other currencies.

Advertisements

Earlier, silver had seen gains in response to comments from President Donald Trump on trade. Although he ruled out talks with Chinese President Xi Jinping this week, Trump suggested a potential rollback of the 145% tariff on Chinese goods. However, his announcement of new 100% tariffs on foreign films and potential levies on pharmaceuticals has contributed to market uncertainty.

The Federal Reserve is expected to keep interest rates unchanged, with markets awaiting remarks from Chairman Jerome Powell amidst ongoing trade volatility and pressure from President Trump to lower rates.

You May Also Like

blank

Futuresstocktrading.com is a comprehensive futures information portal. Whether you’re a novice or seasoned trader, find futures news, futures market, futures trading tips, and futures basic knowledge to enhance your trading prowess and financial success.

[Contact us: [email protected]]

© 2023 Copyright  Futuresstocktrading.com – Futures Market, Investment, Trading & News