Silver Price Steady at $38 as US-EU Trade Talks and Tariff Worries Fuel Uncertainty

Silver Price Holds Steady Near $38 as Markets Await US-EU Trade Developments

The Silver price (XAG/USD) continues to oscillate in a narrow range around $38.00 during Wednesday’s Asian session. Investors are holding off on strong directional bets as they await new developments from the ongoing trade negotiations between the United States (US) and the European Union (EU).

US-EU Trade Talks in Focus

Sentiment around silver remains cautiously bullish after EU Trade Commissioner Maroš Šefčovič arrived in Washington for a fresh round of US-EU trade talks. US President Donald Trump stated on Wednesday that the US could reach an agreement with both India and the EU, fueling speculation of a potential breakthrough.

“We are proximate to India, and we could possibly come to agreement with EU,” Trump said in a televised interview.

Given that the EU is one of America’s key trading partners, any escalation or breakthrough in trade discussions could have a ripple effect on global trade dynamics. Investors typically turn to silver as a safe-haven asset in times of economic and geopolitical uncertainty.

Inflation Risks Support Silver Outlook

Beyond trade issues, silver remains underpinned by rising inflation concerns. Several Federal Reserve (Fed) officials have recently warned that the Trump administration’s tariffs, scheduled to take effect on August 1, could fuel a new wave of inflationary pressure.

As an asset that historically performs well during inflationary periods, silver may see increased demand in the coming weeks. With US CPI and PPI data already showing sticky inflation, market participants are now questioning how the Fed will respond in its upcoming policy meetings.