Silver holds steady ahead of key US-China trade talks

Silver prices steadied around $32.50 per ounce on Friday, capping a volatile week marked by shifting global sentiment and heightened geopolitical uncertainty.

Silver holds steady ahead of key US-China trade talks

Investors remained cautious ahead of the high-stakes US-China trade negotiations scheduled for this weekend in Switzerland, where Chinese Vice Premier He Lifeng is set to meet US Treasury Secretary Scott Bessent and Trade Representative Linda Greer. The talks mark the first high-level engagement between the two countries since the new wave of tariffs was introduced and are being closely watched for any signs of a breakthrough that could ease tensions and reshape commodity market dynamics. The prospect of even a limited agreement has introduced a risk-on tone across markets, curbing some demand for traditional safe-haven assets like silver. Still, traders remained wary, given the fragile state of global trade relations and the potential for talks to falter. Uncertainty over the tariff landscape continues to cloud the outlook for industrial metals, especially silver, which straddles both precious metal and industrial demand categories.

UK-US deal hit the market

Meanwhile, US President Donald Trump confirmed a preliminary trade deal with the UK, hailing it as a model for future bilateral agreements and a sign that his administration is open to selective tariff rollbacks. The announcement helped calm markets somewhat, but concerns persist that escalating protectionism could still lead to supply chain disruptions and inflationary pressures. At the same time, US Federal Reserve Chair Jerome Powell reiterated the Fed’s cautious stance, emphasizing that the central bank remains alert to mounting downside risks. Powell acknowledged the economic drag from tariffs and weakening global trade, but dismissed the idea of a preemptive rate cut, insisting that more data is needed before any policy shift. His comments reinforced expectations that the Fed will hold interest rates steady for now, with futures markets pricing in rate cuts only later in the year if growth continues to slow.

What to expect

Looking ahead, silver traders are likely to remain on edge as they await the outcome of this weekend’s US-China talks, the release of key US inflation data next week, and further developments in global trade policy. Despite recent stabilization, analysts note that price volatility is likely to persist amid uncertainty over interest rates, geopolitical developments, and fluctuating industrial demand.