Why is silver losing momentum as Trump and Xi meet in Beijing?

Silver snapped a six-day winning run on Thursday, reversing earlier gains to trade near $87.30 a troy ounce in Asian hours.

The reversal came as investors weighed the prospects for progress in talks between US President Donald Trump and Chinese President Xi Jinping and prepared for the US April retail sales report later in the day.

The pullback came after a strong stretch for the metal, with sentiment turning more cautious as traders reassessed the near-term outlook for trade policy, physical demand and US interest rates.

Geopolitical tensions linked to Iran remained in the background, but did not provide enough support to extend silver’s rally.

Price action and immediate drivers

Silver gave up intraday gains as markets focused on whether the Trump-Xi meeting in Beijing can deliver a more stable tone for relations between the world’s two biggest economies.

Traders are watching closely for any signs of tariff relief or a framework that could ease pressure on global trade flows.

Reports suggest Washington and Beijing are considering a plan to reduce tariffs on about $\mathrm{\$}30$$30 billion of goods.

Any measures are expected to exclude products deemed sensitive on national security grounds, though it remains unclear how deep the tariff cuts might be or when they would take effect.

That uncertainty helped curb risk appetite and prompted some profit-taking in silver after its recent advance.

Trade and geopolitical backdrop

The policy backdrop remains complicated. Alongside trade negotiations, markets are also tracking the wider geopolitical picture involving Iran.

The US has stepped up pressure on Tehran in recent weeks, including sanctions on entities linked to Iranian oil sales to China, while also warning financial institutions involved in those transactions.

That has kept a layer of geopolitical risk in the market, even if it has not been the dominant driver for silver on Thursday.

For now, traders appear more focused on whether the US-China dialogue can produce practical steps on trade, which would have broader implications for industrial metals and risk-sensitive assets.

India duties and demand

Physical demand is also facing fresh pressure from India, where import tariffs on gold and silver were raised to 15% from 6%.

The new structure combines a 10% basic customs duty with a 5% infrastructure cess, in a move intended to support the rupee and conserve foreign exchange.

The increase is likely to weigh on imports of bullion and coins into one of the world’s biggest precious-metals markets.

For silver, that matters because India remains an important source of both retail and investment demand.

A steeper tax burden could damp purchases just as prices remain elevated.

Fed outlook and what comes next

US monetary policy is another key headwind. Strong producer and consumer inflation readings in recent months have led investors to push back expectations for Federal Reserve rate cuts.

Higher rates tend to weigh on non-yielding assets such as silver by raising the opportunity cost of holding them.

That said, silver still has a supportive medium-term demand story, underpinned by industrial use in solar panels, electronics and automobiles.

Even so, in the short term, traders are likely to stay focused on macro signals rather than structural demand themes.

The next catalysts are clear: the US April retail sales report and any concrete outcome from the Trump-Xi meeting.

A softer retail print could revive hopes of easier policy later this year, while progress on tariffs could improve sentiment towards industrial demand.

Until then, silver may struggle to regain momentum after six straight days of gains.