Silver (XAG/USD) recovered recent losses from the previous session, trading around $33.70 per troy ounce during Asian hours on Thursday (3/27). The metal gained traction as investors sought safe-haven assets following the announcement of US auto tariffs, which have raised concerns over potential retaliatory measures next week.

The risk-off sentiment increased after US President Donald Trump signed an order late Wednesday imposing a 25% tariff on auto imports, effective April 2, with billing starting the following day. However, imports of auto parts will receive a one-month reprieve.

In addition, Silver, a non-yielding asset, could attract buyers as US Treasury yields decline, with the 2-year and 10-year yields hovering at 4.0% and 4.34%, respectively. Moreover, a weaker US Dollar (USD) also makes Silver more affordable for foreign buyers, further supporting demand for the grey metal.

Meanwhile, the Federal Reserve (Fed) reiterated its December projection for two interest rate cuts this year but took a cautious stance. Minneapolis Fed President Neel Kashkari emphasized the ongoing inflation battle, stating, "The job market remains strong, but the biggest challenge is getting the job done," echoing Chairman Powell's view that a rate cut is not imminent. Kashkari also highlighted policy uncertainty as a factor complicating the Fed's case.

Traders are closely watching upcoming US economic data, including the weekly Initial Jobless Claims and the final Q4 Annual Gross Domestic Product (GDP) report due on Thursday. Additionally, Friday's release of the Personal Consumption Expenditures (PCE) report—the Fed's preferred inflation gauge—will provide further policy insights. (Newsmaker23)

Source: FXstreet