Silver (XAG/USD) held steady during Asian trading hours on Wednesday, hovering near $36.60 per troy ounce after shedding more than 0.5% in the previous session. The grey metal remains close to its 13-year peak of $36.89, reached on Monday, as investors await key U.S. inflation data.
All eyes are on the U.S. Consumer Price Index (CPI) report, scheduled for release later in the North American session. Analysts anticipate a 2.5% year-over-year increase for May, a figure that could significantly influence market sentiment and the Federal Reserve’s next policy moves.
Despite Silver’s resilient performance, the broader precious metals market may encounter headwinds from waning safe-haven demand. This comes amid signs of easing trade tensions between the United States and China. U.S. Commerce Secretary Howard Lutnick on Tuesday signaled progress in bilateral discussions, noting both sides had agreed to a framework for implementing the Geneva Consensus.
The framework is expected to address contentious issues such as the trade of rare earth minerals and magnets. China’s Vice Commerce Minister Li Chenggang described talks with U.S. officials as “rational and candid,” adding that he would brief Chinese leadership on the proposed framework. Formal implementation remains contingent on final approval from both governments.
Adding to the cautious mood, the World Bank on Tuesday downgraded its global growth forecast for 2025 by 0.4 percentage points to 2.3% in its semi-annual Global Economic Prospects report. The institution cited rising tariffs and increasing geopolitical uncertainty as risks to nearly every major economy, revising down forecasts for around 70% of them.
