Silver Price Forecast: XAG/USD slips below $33.50 due to easing US-China trade concerns

• Silver prices dip as reports suggest China may ease tariffs on certain US imports.
• Beijing is reportedly considering a suspension of its 125% tariffs on select American goods.
• Silver may rebound if the Trump administration moves to reduce tariffs on Chinese imports.

Silver price (XAG/USD) inches lower following two days of gains, trading around $33.40 per troy ounce during the European hours on Friday. The metal's safe-haven appeal weakens as reports emerge suggesting China may lift tariffs on certain US imports.

According to Bloomberg, China is considering suspending its 125% tariffs on select American goods, including medical equipment, ethane, and aircraft leasing. Sources indicate that Chinese officials are particularly focused on waiving tariffs for aircraft leases. However, neither China's Ministry of Finance nor the General Administration of Customs has made any official statements.

The US Dollar (USD) gains traction on optimism surrounding trade negotiations, making dollar-denominated Silver less attractive to traders with foreign currencies. Reuters reported early progress in US trade talks with key Asian allies like South Korea and Japan, further supporting the Greenback.

Despite the recent dip, Silver prices could recover if the US, under the Trump administration, chooses to lower tariffs on Chinese goods, contingent on the progress of potential negotiations. China has shown a willingness to engage in dialogue. As silver is a crucial component in industries such as electronics, solar energy, and automotive manufacturing, any improvement in US-China trade relations could boost demand for the metal.

Michael Hart, President of the American Chamber of Commerce in China, welcomed the news of both countries reviewing tariffs. Hart noted that while discussions around exclusion lists for specific product categories are underway, no official policies have been released. Both the Chinese Ministry of Commerce and the US Department of Commerce are currently gathering stakeholder input.