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.

Source: FXStreet