- Silver price remains close to a 13-year high of $36.89, which was marked on Monday.
- The safe-haven Silver may struggle amid easing US-China trade tensions.
- Officials from the US and China reached potential resolutions but are awaiting approvals from their leaders.
Silver price (XAG/USD) holds ground after registering over a 0.50% loss in the previous session, trading around $36.60 per troy ounce during the Asian hours on Wednesday. The price of the grey metal maintains a position near a 13-year high of $36.89, which was reached on Monday. The US Consumer Price Index (CPI) data will be closely watched later in the North American session, with expectations of a 2.5% year-over-year (YoY) rise in May.
However, precious metals, including Silver, may face challenges due to dampened safe-haven demand amid easing trade tensions between the United States (US) and China. On Tuesday, US Commerce Secretary Howard Lutnick indicated potential resolutions with China. Lutnick also said that both countries have reached a framework to implement the Geneva Consensus.
US negotiators also expect the issues around shipments of rare earth minerals and magnets will be resolved with the framework implementation. While China’s Vice Commerce Minister Li Chenggang called the communication with the US counterparts rational and candid, he will report on a framework to Chinese leaders. Officials from both sides will seek approval from their leaders before implementation.
On Tuesday, in its twice-yearly Global Economic Prospects report, the World Bank downgraded its global growth forecast for 2025 by 0.4% to 2.3%, highlighting that higher tariffs and heightened uncertainty posed a significant threat for nearly all economies. The global lender slashed its forecasts for nearly 70% of all economies.
