Silver Price Forecast: XAG/USD trades lower near $52.00 due to receding safe-haven demand

• Silver price falls to near $52.00 on easing US-China trade frictions.

• US President Trump expresses confidence about US-China trade deal.

• This week, investors will keenly focus on the US inflation data for September.

Silver price (XAG/USD) is down 0.9% to near $51.90 during the late Asian trading session on Tuesday. The white metal faces selling pressure as rally in precious metals has halted for now due to receding trade tensions between the United States (US) and China.

Easing global trade frictions diminish demand for safe-haven assets, such as Silver.

US-China trade tensions have eased as President Donald Trump has expressed confidence that Washington and Beijing will reach a consensus ahead of his meeting with Chinese leader Xi Jinping later this month.

Ahead of Trump-Xi meet, US Treasury Secretary Scott Bessent and China’s top negotiator Vice Premier He Lifeng are scheduled to meet in Malaysia later this week. Both are expected to discuss on rolling back recently announced export controls on rare earth minerals by Beijing and an additional 100% tariffs imposed on Chinese imports by Washington.

Another reason behind weakness in the Silver price is increasing hopes that the federal government will reopen this week. On Monday, White House economic adviser Kevin Hassett stated in an interview with CNBC that the shutdown is” likely to end sometime this week”.

Going forward, investors will pay close attention to the delayed Consumer Price Index (CPI) data for September, which will be published on Friday. The inflation data will influence market expectations for the Federal Reserve’s (Fed) monetary policy outlook.

Silver technical analysis

Silver price retraces from the all-time high around $54.50 posted on Friday. However, the near-term trend remains bullish as the 20-day Exponential Moving Average (EMA) slopes higher, which trades around $49.34.

The 14-day Relative Strength Index (RSI) oscillates above 60.00, suggesting that a strong bullish momentum remains intact.

Looking down the 20-day EMA would remain a key support. On the upside, the all-time high of $54.50 might act as key barrier.

Silver daily chart