FX.co ★ Silver Rebounds as Trade Optimism Cools

Silver prices experienced a significant increase of nearly 2%, climbing above $33 per ounce on Tuesday. This rise partially offset losses from the prior session as initial excitement surrounding the US-China trade agreement began to diminish, leading to broader market caution. The increase in silver prices followed negotiations that took place over the weekend in Switzerland, where the United States and China agreed to mutually reduce tariffs to 10% and 30% for a 90-day period. This agreement represents a notable but temporary reduction in trade tensions between the two nations. While officials from both countries are expected to meet again in the coming weeks to work towards a broader trade agreement, uncertainty lingers regarding the situation after the 90-day period elapses. The agreement has also bolstered the long-term prospects for silver's industrial demand, especially in the renewable energy sector, where the US and China are key players. Meanwhile, investors are anticipating the latest US consumer inflation report, which could shape expectations regarding the Federal Reserve's forthcoming decisions on interest rates.