Silver prices (XAG/USD) rebounded from recent losses during Wednesday’s Asian session, trading around $32.70 per troy ounce. The recovery, however, faced some resistance as investor optimism surrounding the Federal Reserve’s (Fed) independence began to strengthen.
US President Donald Trump contributed to calming market concerns by clarifying that he had no plans to remove Federal Reserve Chair Jerome Powell. Trump stated, “The press runs away with things. No, I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates.”
Investor sentiment was further bolstered by comments from US Treasury Secretary Scott Bessent, who described the ongoing tariff dispute with China as “unsustainable” and expressed confidence in a resolution. While formal negotiations have yet to begin, Bessent suggested that a deal may soon be reached, according to attendees at a private event hosted by JP Morgan Chase & Co. in Washington.
Trump also reinforced this positive outlook, noting progress in US-China trade talks. He downplayed fears of steep tariff increases, stating that they would not rise to 145%, though confirming that current tariffs would remain in place for now.
Despite the favorable backdrop for broader markets, silver continues to benefit from potential gains in industrial demand. As silver plays a critical role in sectors such as electronics, solar energy, and automotive manufacturing, any improvement in US-China trade relations, particularly with China’s significant manufacturing capacity, could further boost demand for the metal.
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