Silver prices (XAG/USD) faced pressure during the Asian trading session on Friday, hovering around $32.90 per troy ounce, following gains in the previous session. The precious metal, often seen as a safe-haven asset, is experiencing selling pressure as risk-on sentiment gains traction after US President Donald Trump hinted at potential progress in trade talks with China. Trump’s comments eased market fears over tariffs and sparked optimism, with speculation that Chinese President Xi Jinping might visit the US to discuss key issues, including the TikTok dispute.
However, Silver found some support amid ongoing trade and geopolitical uncertainties. Trump’s announcement of plans to impose 25% tariffs on imports of automobiles, semiconductors, and pharmaceuticals reignited concerns about a global trade war, keeping traders cautious.
Tensions between Trump and Ukrainian President Volodymyr Zelensky also contributed to market unease. Trump labeled Zelensky a “dictator” after the Ukrainian leader criticized the exclusion of Kyiv from recent US-Russia talks in Saudi Arabia. Zelensky, in turn, accused Trump of being influenced by disinformation controlled by Moscow, escalating political tensions.
In the US, signals from Federal Reserve officials added further complexity to the outlook. In January, the Fed made it clear that they require more progress on inflation before considering any interest rate cuts. Federal Reserve Governor Adriana Kugler noted on Thursday that inflation still has “some way to go” before meeting the Fed’s 2% target, while St. Louis Fed President Alberto Musalem warned of potential stagflation risks and rising inflation expectations, according to Reuters.
