Silver Price Forecast: XAG/USD Rebounds Near $36.70 Ahead of US-China Trade Talks Outcome

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Silver Price Forecast: XAG/USD Rebounds Near $36.70 Ahead of US-China Trade Talks Outcome

Silver (XAG/USD) rebounded from early-session losses on Tuesday, climbing back toward $36.70 during European trading hours. This recovery from the intraday low of $36.30 came amid cautious optimism surrounding ongoing US-China trade negotiations in London.

US-China Trade Talks in Focus

The White House confirmed that talks between the United States and China are progressing, with negotiations continuing throughout the day. While positive trade developments often reduce the appeal of safe-haven assets like silver, market participants remain cautious, awaiting official outcomes.

Related: What US-China Trade Talks Mean for Global Markets

US Inflation Data to Set the Tone

Investors are also preparing for the May Consumer Price Index (CPI) release in the United States, scheduled for tomorrow. Analysts expect inflation to have accelerated, which could influence Federal Reserve policy and impact metal markets.

US Dollar Weakens Ahead of Key Data

Meanwhile, the US Dollar Index (DXY) remains subdued around 99.70, reflecting trader hesitation ahead of inflation data and trade developments. A weaker dollar often supports precious metal prices, including silver.

Also read: How Inflation Impacts Precious Metals Prices

Market Outlook

While optimism over trade progress may eventually weigh on silver's safe-haven demand, near-term uncertainties and soft dollar sentiment are supporting XAG/USD. All eyes remain on both the CPI release and the next steps in trade negotiations.

Key Takeaways

• Silver price rebounds to $36.70 during European session.
• US-China trade talks continue in London with positive signals.
• May CPI data expected to show rising inflation in the US.
• US Dollar Index remains weak, favoring commodities like silver.