Silver (XAG/USD) remained near $28.79 in the Asian trading session on Friday, slightly below its weekly peak. Despite favorable market conditions such as a weakening US dollar and expected Federal Reserve rate cuts, the movement of silver’s price was subdued. Traders are being cautious leading up to the significant US Nonfarm Payrolls (NFP) report, which could provide further guidance for silver prices. The ongoing review of the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE is also impacting silver. The review, focusing on tariff concessions and import regulations, is creating uncertainty surrounding silver import volumes. Despite positive market sentiment overall, silver has faced challenges in breaking out of its current trading range. India’s CEPA Review with UAE Sparks Uncertainty in Silver Market Silver imports from the UAE to India saw a staggering 5,853% year-over-year surge, reaching $1.74 billion in FY24, compared to $29 million in the previous year. This significant increase is attributed to tariff concessions granted under CEPA, a trade pact between India and the UAE put into effect in May 2022. While the agreement was initially viewed as a move towards free trade, India’s recent review has raised doubts about the long-term benefits, particularly concerning the rise in precious metal imports. The uncertainty surrounding the trade deal and potential revisions could impact future silver imports, thereby influencing global silver prices. However, the actual consequences will depend on how India renegotiates terms with the UAE. First Majestic Silver’s Merger with Gatos Silver to Enhance Production In corporate news, First Majestic Silver has disclosed a merger with Gatos Silver, valuing the latter at $13.49 per share. This merger will unite three major silver mining districts, increasing First Majestic’s annual silver-equivalent production to 30-32 million ounces, including 15-16 million ounces of silver. With estimated all-in sustaining costs ranging between $18.00 and $20.00 per ounce, the merger is anticipated to bolster First Majestic’s global position. Nevertheless, the uptick in supply could exert downward pressure on silver prices, subject to demand trends and production expenses. Short-Term Projection Silver is anticipated to trade within the range of $28.35 to $28.88. A breach above $28.88 could trigger a bullish trend, while slipping below $28.35 suggests heightened downside risks.