Silver prices surged nearly 2% to above $33 per ounce on Tuesday, rebounding from losses in the previous session as initial enthusiasm over the US-China trade agreement began to wane, giving way to broader market caution.

The rally followed weekend negotiations in Switzerland, where Washington and Beijing agreed to reduce their respective tariffs to 10% and 30% for a 90-day period—marking a significant, though temporary, de-escalation in trade tensions.

While officials from both countries are expected to reconvene in the coming weeks to pursue a broader trade accord, uncertainty remains over what will happen after the 90-day window expires.

The agreement also supported the longer-term outlook for silver's industrial demand, particularly in the renewable energy sector, where both the US and China play leading roles. Meanwhile, investors look ahead to the latest US consumer inflation report, which could influence expectations for the Federal Reserve's next moves on interest rates.

Source: Trading Economics