Silver (XAG/USD) is trading lower, down 0.9% to around $51.90 during Tuesday’s late Asian session. The white metal faces renewed selling pressure as the recent rally in precious metals pauses amid easing trade tensions between the United States (US) and China.
The softening of global trade frictions has reduced investors’ appetite for safe-haven assets such as silver.
US-China relations appear to be stabilizing after President Donald Trump voiced optimism that Washington and Beijing could reach an agreement ahead of his upcoming meeting with Chinese President Xi Jinping later this month.
In the lead-up to the Trump-Xi summit, US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng are expected to meet in Malaysia later this week. The discussions will likely focus on easing recently imposed trade measures, including Beijing’s export restrictions on rare earth minerals and Washington’s 100% tariff hike on Chinese imports.
Adding to the downward pressure on silver prices are renewed hopes that the US federal government shutdown could end this week. On Monday, White House economic adviser Kevin Hassett told CNBC that the closure is “likely to end sometime this week,” fueling optimism across broader markets.
Looking ahead, investors will closely monitor the delayed September Consumer Price Index (CPI) report, due for release on Friday. The data will be key in shaping market expectations for the Federal Reserve’s (Fed) next moves on monetary policy.
Silver technical outlook
Silver prices have pulled back from Friday’s record high near $54.50. Despite the correction, the near-term bias remains bullish as the 20-day Exponential Moving Average (EMA) continues to trend upward around $49.34.
The 14-day Relative Strength Index (RSI) holds above 60.00, indicating that bullish momentum remains strong.
On the downside, the 20-day EMA offers a crucial support zone. Conversely, a break above the all-time high of $54.50 could open the door for further gains.
