The post XAG/USD drops below $32.50 due to softer China’s economic data appeared on BitcoinEthereumNews.com.

Silver price declines as softer economic data from China fuel demand concerns. China’s Producer Price Index fell 2.2% YoY, underscoring persistent deflationary pressures in the country’s industrial sector. The downside risks for the safe-haven metal remain limited as trade tensions intensify following China’s 100% tariff on Canadian imports. Silver price (XAG/USD) extends its losing streak for a third consecutive session, trading around $32.40 per troy ounce during Asian hours on Monday. The prices of the grey metal depreciate as softer economic data from China fuel demand concerns. China’s Producer Price Index (PPI) dropped 2.2% year-over-year, following a 2.3% decline in the previous two months. This represents the slowest contraction since August 2024 but highlights persistent deflationary pressures in China’s industrial sector, where Silver demand is significant. Moreover, China’s Consumer Price Index (CPI) fell 0.7% year-over-year in February, exceeding market expectations of a 0.5% decline and reversing the previous month’s 0.5% increase. This marks the first instance of consumer deflation since January 2024. However, downside risks for the safe-haven metal appear limited as trade tensions escalate. On Saturday, China announced a 100% tariff on Canadian agricultural goods in retaliation for tariffs imposed by Canada in October, further intensifying the broader trade conflict shaped by Trump’s tariff policies.  Last week, President Trump’s 25% tariffs on Canadian and Mexican imports took effect. However, on Thursday, a one-month exemption was introduced for goods meeting North American trade pact standards, offering some temporary relief. Additionally, safe-haven demand for Silver could strengthen amid rising concerns over the US economy. San Francisco Fed President Mary Daly stated late Sunday that growing uncertainty among businesses could weigh on economic demand. Daly noted that business leaders in her district are increasingly worried about economic conditions and policy, which research suggests may dampen overall demand. Silver FAQs Silver is a precious…

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Filed under: News - @ March 10, 2025 4:18 am