Silver prices are rising due to ongoing US-China trade uncertainty, increasing demand for safe-haven assets. President Trump confirmed ongoing negotiations, but no talks with President Xi Jinping are expected this week.

Silver currently trades near $32.10 as traders respond to trade talk uncertainties. The precious metal is benefiting from a weaker US Dollar, enhancing its appeal to those holding other currencies.

China is considering a US proposal to resume trade discussions amid the ongoing negotiations. Pressure on the US Dollar is partly from escalating trade tensions, with plans for a 100% tariff on foreign films.

Silver’s industrial demand faces challenges due to negative global economic data. The US economy contracted by 0.3% in Q1, while China’s manufacturing PMI fell to a 16-month low.

Attention is on the US Federal Reserve meeting, with rates likely unchanged despite calls for cuts. Monday’s US ISM Services PMI release is also being watched for economic insights.

Silver is popular as a value store and for diversification, trading through physical assets or ETFs. Factors influencing prices include geopolitical events, interest rates, and US Dollar performance.

Industrial demand, especially in electronics and solar energy, can also impact prices. Silver prices often follow Gold’s movements, with the Gold/Silver ratio indicating relative valuations.

Silver’s continued push above the $32 mark reflects a market still digesting a series of conflicting signals. The recent confirmation that there will be no immediate talks between top leaders of the US and China has helped to preserve uncertainty in international trade policy. Despite ongoing dialogue in other areas, the lack of direct engagement at the top raises doubts about swift resolutions, which in turn sustains buying in traditional safe stores of value. The precious metal, benefiting from this mood, has caught support from a sluggish US Dollar that has struggled under recent trade policy announcements.

Among those, the floated idea of a 100% tariff on foreign media—though not yet enacted—has added to the perception that trade relations remain strained and unpredictable. These types of propositions, when publicised, undermine confidence in future revenue flows from cross-border commerce, particularly in goods and services with substantial international investment. This, predictably, nudges capital towards assets perceived as more reliable during periods of lower confidence.

Silver, often playing double duty as both an industrial component and financial asset, naturally finds itself sensitive to indicators across the board. The recent Q1 US GDP contraction of 0.3%—modest but material—paired with weakening sentiment in Chinese manufacturing, spells a slowdown on both sides of the Pacific. For those adjusting positions, this data adds an extra hurdle to industrial demand forecasts. Combined with China’s PMI sliding to its weakest level in over a year, these figures suggest that while investor demand may keep prices buoyant, industrial pull could lag.

Domestically, attention shifts to the Federal Reserve, not necessarily because a rate change is expected, but more due to the tone Fed officials choose in their communications. Even when no policy shift occurs, the market often moves on how language and projections surrounding growth and inflation are framed. The ISM Services PMI on Monday serves as another checkpoint, especially given the current tug-of-war between inflation control and growth concerns.

For us, this backdrop requires measured steps. Any bias towards directional trades should remain tethered to tangible catalysts. The metal’s relationship to gold structurally supports the case for pairing or ratio-based trades, particularly if large moves between the two metals widen or compress spreads beyond recent averages. But price levels alone shouldn’t be the final word—liquidity, macro signals, and options positioning offer more immediate guidance.

In terms of strategy, price action suggests that sentiment still leans risk averse. Holding long exposure near current levels carries its own risk, especially if tension de-escalation becomes likely or dollar strength returns due to central bank recalibrations or unexpected policy turns. Scaling into positions around data releases or as implied volatility shifts could offer better entry points than committing up front.

Watching how positioning adjusts post-Fed and following PMI figures will help clarify whether silver’s climb has legs or is simply a temporary reaction.