Silver (XAG/USD) rebounded during late Asian trading on Monday, trading around $52.30, up roughly 0.7% after a sharp correction from last Friday’s all-time high near $54.50.
The white metal faced selling pressure following comments from US President Donald Trump, who indicated that the additional 100% tariffs on imports from China are unlikely to be permanent. “High tariffs were not sustainable, though they could stand,” Trump said, according to Fox Business. Signs of easing US-China trade tensions have dampened demand for safe-haven assets like Silver.
Trade frictions originally escalated after China imposed export controls on rare earth minerals, prompting US retaliatory measures. Market participants now await further updates at the upcoming US-China meeting during the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month. US Treasury Secretary Scott Bessent will meet his Chinese counterpart, Vice Premier He Lifeng, ahead of the summit, providing additional guidance for traders.
Meanwhile, expectations that the Federal Reserve (Fed) will cut interest rates by at least 50 basis points (bps) this year continue to support Silver. Lower interest rates are positive for non-yielding assets, and according to the CME FedWatch Tool, markets see a near certainty of a 50-bps reduction and a 4.8% chance of a 75-bps cut.
Technical outlook: Bullish momentum intact
From a technical perspective, Silver retraced from Friday’s all-time high, but the near-term trend remains bullish. The 20-day Exponential Moving Average (EMA) slopes upward around $49.00, providing strong support, while the 14-day Relative Strength Index (RSI) remains above 60, indicating sustained bullish momentum.
Key levels to watch include support at the 20-day EMA near $49.00, with resistance at $54.50, the all-time high. A clear break above this barrier could extend the rally, while a drop below the EMA may signal a deeper corrective phase.
