Silver (XAG/USD) stalled its three-day rally on Tuesday, trading near $36.50 per troy ounce during Asian hours, as diminishing safe-haven demand pressured precious metals. The cooling sentiment follows growing optimism surrounding de-escalation in the United States–China tariff dispute.
US Treasury Secretary Scott Bessent described Monday’s talks as a “good meeting,” while Commerce Secretary Howard Lutnick labeled them “fruitful,” fueling hopes of diplomatic progress between the world’s two largest economies.
Negotiations are set to resume Tuesday at 10:00 a.m. in London, with further discussions expected to focus on trade issues including technology exports and rare earth elements.
Despite Tuesday’s price dip, silver found underlying support from Citigroup’s projections released Monday. The firm anticipates the Federal Reserve will implement a series of 25 basis point interest rate cuts—one each in September, October, and December 2025, followed by additional cuts in January and March 2026.
Still, robust US labor data has tempered expectations of immediate monetary easing, suggesting the Fed may hold rates steady through its next two policy meetings. Market participants now await Wednesday’s release of the US Consumer Price Index (CPI) for clearer signals on the central bank’s trajectory.
