Silver (XAG/USD) prices moved higher on Monday (3/24), trading around $33.10 per troy ounce during Asian trading hours after three consecutive sessions of declines. The recovery was driven by a weaker US Dollar as concerns over a potential US economic slowdown grew due to President Donald Trump's trade policies.

The US Dollar Index, which measures the USD against a basket of six major currencies, snapped a three-day winning streak and traded lower near 104.10. Meanwhile, market participants await the preliminary reading of the US S&P Global Manufacturing PMI for March.

However, Silver may face headwinds as the Federal Reserve (Fed) maintained its outlook for two interest rate cuts later this year, following its decision to keep the federal funds rate at 4.25%–4.5% during its March meeting. The Fed's stance, which is in line with expectations of slower GDP growth and higher unemployment, helps offset inflation concerns, which may be exacerbated by President Trump's aggressive tariffs.

In addition, Silver prices could come under pressure from safe-haven inflows amid improving risk sentiment as the White House revises its tariff strategy ahead of its April 2 implementation. According to the Wall Street Journal, the administration is expected to roll back some industry-specific tariffs while imposing reciprocal tariffs on countries with strong trade ties with the US.

In addition, geopolitical tensions eased following talks between Ukrainian and US officials in Riyadh on Sunday. Efforts to broker a ceasefire continue, with President Trump advocating an end to the three-year war. Ukrainian Defense Minister Rustem Umerov discussed measures to protect energy and critical infrastructure, while US and Russian delegations will hold separate talks on Monday, according to Bloomberg.(Newsmaker23)

Source: FXstreet