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Silver (XAG/USD) traded around $32.30 per troy ounce during Thursday’s Asian session (April 17), trimming some of its gains from the previous day. The precious metal faced downward pressure as global risk sentiment improved following US President Donald Trump’s announcement of exemptions for key technology products from the proposed “reciprocal” tariffs.
These exemptions, which include smartphones, computers, semiconductors, solar cells, and flat-panel displays, primarily benefit goods produced in China. However, Silver’s decline remained limited as Trump simultaneously launched an investigation into potential tariffs on critical minerals, further escalating trade tensions with China. This investigation also extends to sectors like copper, pharmaceuticals, wood, and semiconductors, highlighting the limited US domestic production capacity in these areas.
Despite the initial dip, Silver’s safe-haven appeal remains intact, bolstered by ongoing uncertainty surrounding US trade policy and weak demand for the US Dollar (USD) and Treasury securities. The US Dollar Index (DXY) remains around 99.50, while US Treasury yields are at 3.80% for 2-year bonds and 4.30% for 10-year bonds.
Additionally, dovish signals from major central banks continue to support non-yielding assets like Silver. Lower-than-expected inflation in the US, Canada, the UK, India, and the Eurozone in March, coupled with the potential rate cuts from the People’s Bank of China (PBoC) this quarter, further strengthen the case for precious metals.
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