Silver (XAG/USD) is trading at approximately $32.30 per troy ounce during Thursday’s Asian session, retracing some of its gains from the previous day. The precious metal is facing downward pressure as global risk sentiment improves, following US President Donald Trump’s announcement of tariff exemptions for key technology products.
The exemptions, which include smartphones, computers, semiconductors, solar cells, and flat-panel displays, primarily benefit Chinese-made goods. However, Silver’s downside remains limited as Trump simultaneously launched an investigation into possible tariffs on critical minerals, escalating trade tensions with China. This probe also extends to key sectors like copper, pharmaceuticals, lumber, and semiconductors, reflecting the US’s challenges with domestic production capacity in these areas.
Despite this, Silver continues to attract safe-haven demand due to ongoing uncertainty over US trade policy, alongside a subdued US Dollar (USD) and Treasury yields. The US Dollar Index (DXY) remains near 99.50, while yields on 2-year and 10-year US Treasury notes are at 3.80% and 4.30%, respectively.
In addition, dovish signals from major central banks provide support for non-yielding assets such as Silver. Softer-than-expected inflation in the US, Canada, UK, India, and the Eurozone in March, combined with expectations of a rate cut from the People’s Bank of China (PBoC) this quarter, further strengthen the case for precious metals as a hedge.
