The Silver price (XAG/USD) recovers some lost ground to around $29.85 during the Asian trading hours on Wednesday. Analysts believe the recent correction could be a setup for a strong rebound amid rising trade tensions and recession fears. Traders brace for the FOMC Minutes, which are due later on Wednesday.

US President Donald Trump said late Tuesday that he wasn't considering a pause on his plan to impose sweeping additional tariffs on dozens of countries despite contact from trade partners seeking to avoid the levies. However, he hinted that he could be open to some negotiations.

Trump's remarks came after his top officials sent signals about the administration's willingness to engage with trade partners, with a 10% tariff already in place and targeted retaliatory import tariffs scheduled for Wednesday. This uncertainty has spurred global market volatility and boosted the safe-haven demand, supporting the Silver price.

Additionally, industrial demand, especially from new-age industries like EVs and solar energy, provides some support to the white metal. Gains are also expected in the consumer electronics market, as the development of artificial intelligence systems will continue to boost product offerings.

Traders will keep an eye on the FOMC Meeting Minutes on Wednesday. This report could offer insight into the Federal Reserve's (Fed) stance on monetary policy. Any hawkish remarks from the Fed officials could lift the Greenback and weigh on the USD-denominated commodity price in the near term.

Source: Fxstreet