Silver prices (XAG/USD) slipped to around $34.15 during Tuesday’s Asian trading session, retreating from a near seven-month peak as traders engaged in profit-taking amid easing trade tensions.
The precious metal’s decline comes amid a broadly positive sentiment in equity markets, which tends to weigh on safe-haven assets like silver. US President Donald Trump is set to double import tariffs on steel and aluminum starting Wednesday, while simultaneously urging trade partners to submit their best offers to finalize agreements by July 8. Despite these developments, downside risks for silver remain somewhat contained amid ongoing tariff and economic uncertainties.
The US dollar edged lower after data revealed that US manufacturing contracted for the third consecutive month in May. The Institute for Supply Management (ISM) reported the US Manufacturing Purchasing Managers Index (PMI) fell to 48.5 in May from 48.7 in April, missing the market forecast of 49.5. This weaker-than-expected reading may help limit losses in the dollar-denominated silver price.
Market attention now turns to the US employment report, scheduled for release on Friday. The report is expected to show May Nonfarm Payrolls growth of 130,000 jobs, with the unemployment rate steady at 4.2%. A stronger-than-anticipated report could bolster the US dollar and weigh on silver prices.
