Silver (XAG/USD) prices extended their gains for the third straight session, hitting a fresh 13-year high of $36.42 per troy ounce on Monday (09/06). The grey metal gained on rising demand for safe-haven assets amid concerns over global economic and trade uncertainties.

Non-yielding assets, including Silver, may have found support after Citigroup released its forecasts on Monday, which predicted the Fed would cut interest rates by 25 basis points each in September, October, and December. The firm also predicted the central bank would cut rates by 25 basis points each in January and March 2026.

However, stronger-than-expected US labor market data for May, released on Friday, raised expectations for the Federal Reserve (Fed) to leave its benchmark interest rate unchanged at its next two monetary policy meetings.

Investors are cautious ahead of fresh US-China trade talks in London. US President Donald Trump had an hour-and-a-half long phone call with Chinese President Xi Jinping on Thursday. Trump also said that the call resulted in a very positive conclusion for both countries.

Trump administration officials, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, are scheduled to meet with their Chinese counterparts in London on Monday. Positive sentiment around potential trade talks between the world's two largest economies supported risk-sensitive assets and limited gains in safe-haven metals, including Silver.

Silver is receiving support from strong industrial demand in solar energy applications. The Silver Institute reported that global Silver supply is 15% lower than demand in 2024. The association also forecasts another deficit in 2025. (alg)

Source: FXstreet