Silver price (XAG/USD) bounces back to near $32.00 during European trading hours on Thursday after sliding to near the monthly low around $31.65 earlier in the day. The outlook of the Silver price remains bearish as trade relations between the United States (US) and China have improved further.

During European trading hours, US Treasury Secretary Scott Bessent signaled more talks with China to avoid trade tensions. "We are going into a series of negotiations with China to prevent escalation again," Bessent said.

Meanwhile, Beijing also appears to be making efforts to improve relations with the US.

On Wednesday, the Chinese Commerce Ministry suspended non-tariff measures taken against 45 US entities in the wake of an agreement between Washington and Beijing for a 90-day pause in the trade war in which they lowered tariffs by 115%.

Waning US-China trade tensions have forced investors to reassess the global economic outlook. Theoretically, an improvement in the global economy reduces demand for safe-haven assets, such as Silver.

Meanwhile, investors await Federal Reserve (Fed) Chair Jerome Powell's speech, which is scheduled in the North American session. Investors would look cues for any change in the Fed's stance towards the monetary policy outlook after the temporary US-China trade truce and soft US Consumer Price Index (CPI) data for April.

The Silver price could face more pressure if Fed Powell guides that interest rates should remain where they are in the face of economic uncertainty due to new economic policies by US President Donald Trump. Fed's higher for longer interest rates bode poorly for non-yielding assets, such as Silver.

Source: FXStreet