Silver Price Forecast: XAG/USD holds below $52.50 as easing trade tensions cap safe-haven demand

• Silver price trades on a negative note around $52.35 in Tuesday's early Asian session.
• Trump admitted that the additional 100% tariffs he proposed on China were not sustainable.
• Fed rate cut bets might help limit Silver's losses.

Silver price (XAG/USD) declines near $52.35 during the early Asian session on Tuesday. The white metal retreat from last week's record high due to the safe-haven demand eased as trade tensions between the US and China softened. Traders will take more cues about the US interest rate path from the speech of Federal Reserve (Fed) Bank Governor Christopher Waller later on Tuesday.

Analysts believe that Silver might decline on profit-booking, as traders cash in on their gains. Additionally, US President Donald Trump on Friday sought to ease trade tensions with China, saying that his proposed 100% tariff on goods from China would not be sustainable. His softer tone and confirmation of his intention to meet with Chinese President Xi Jinping this week help to mitigate trade tensions between the world's two largest economies. This, in turn, dampens the safe-haven demand and drags the Silver price lower.

On the other hand, Fed rate cut expectations and dovish comments from Fed officials might lift the white metal. Fed Governor Christopher Waller said that he is on board for another interest rate cut at the Fed's meeting later this month, citing the mixed readings on the state of the job market.

Meanwhile, St. Louis Fed President Alberto Musalem said that he could support a path with another rate cut if more risks to jobs emerge and inflation is contained. Lower interest rates could reduce the opportunity cost of holding Silver, supporting the non-yielding precious metal.