Spot Silver eased from a 2-month high on Thursday, as market players focused on the summit between US President Donald Trump and Chinese President Xi Jinping.
According to media reports, the United States and China are examining a potential framework that would reduce tariffs on approximately $30 billion of goods, excluding items linked to national security. The move is being viewed as an attempt to ease bilateral strains and foster more stable economic ties.
Trump is also expected to seek assistance from China to resolve the prolonged conflict with Iran. However, some analysts are skeptical that Trump will receive the support he wants.
Washington has stepped up pressure on Tehran by announcing new sanctions on entities involved in shipping Iranian crude to China and issuing warnings to banks that facilitate such transactions.
On the data front, US producer prices rose at their sharpest rate in four years in April – another indication of mounting inflationary pressure.
Traders have largely priced out Fed interest rate cuts for 2026, while the probability of a hike by December stood at 28%.
Another factor weighing on Silver is India’s decision to sharply increase import duties on both Gold and Silver. The effective rate has been lifted from 6% to 15%, comprising a 10% Basic Customs Duty plus a 5% infrastructure cess.
Higher import costs could undermine some price-sensitive demand, but underlying consumption related to industrial uses remains a potential source of support.
Spot Silver was last down 0.12% on the day to trade at $87.35 per troy ounce.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
