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- Silver price gains temporary ground below $32.00 ahead of Fed Powell’s speech.
- Signs of improving US-China trade relations have dampened the appeal of safe-haven assets.
- China has rolled back non-tariff measures on 45 US entities temporarily.
Silver prices (XAG/USD) rebounded to approximately $32.00 during European trading hours on Thursday, recovering from an earlier dip to around $31.65, which represented a near-monthly low. However, the overall outlook for silver remains cautiously bearish, primarily influenced by the ongoing improvement in trade relations between the United States and China. Investors are also closely monitoring upcoming remarks from Federal Reserve Chairman Jerome Powell, anticipating potential insights into the future direction of monetary policy. Market participants are assessing whether Powell’s commentary will reinforce or challenge current expectations regarding interest rate adjustments.
During the European trading session, US Treasury Secretary Scott Bessent indicated the likelihood of further discussions with China aimed at mitigating trade tensions. “We are going into a series of negotiations with China to prevent escalation again,” Bessent stated, signaling a proactive approach to de-escalate potential conflicts and foster a more stable trade environment. These negotiations are viewed as crucial for maintaining global economic stability and preventing disruptions to supply chains.
Concurrently, Beijing is demonstrably working to improve its relationship with the US. On Wednesday, the Chinese Commerce Ministry announced the temporary suspension of non-tariff measures previously imposed on 45 US entities. This action follows an agreement between Washington and Beijing to implement a 90-day pause in the trade war, during which both nations reduced tariffs by 115%. This reciprocal reduction in trade barriers is perceived as a positive step towards normalizing trade relations and fostering greater economic cooperation between the two largest economies in the world. The market is carefully watching to see if this detente will hold, and what further steps might be taken to resolve outstanding trade disputes.
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