Silver (XAG/USD) prices moved higher after a recent decline, trading around $32.30 per troy ounce during the Asian session on Wednesday (4/16). The rise came as lingering uncertainty over US trade policy continued to fuel safe-haven demand for the precious metal.

A weaker US Dollar (USD) also supported Silver prices, making the dollar-denominated asset more attractive to foreign buyers. The US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, was trading lower near 99.80 at the time of writing. Market attention now turns to the upcoming US Retail Sales data for March, which could shed light on the impact of tariff tensions on consumer spending.

The safe-haven flow into Silver strengthened after US President Donald Trump called for an investigation into potential tariffs on all imports of critical minerals. The move signals a more aggressive trade stance and increases the risk of tensions with key suppliers, including China. The move also partly offset market optimism fueled by recent exemptions on certain technology products and a possible exemption for auto parts.

Meanwhile, Federal Reserve Governor Christopher Waller sought to calm market nerves, saying that inflation stemming from tariffs was likely to be transitory. Waller also reiterated the Fed's willingness to cut interest rates if needed, signaling the central bank's commitment to supporting growth. Investors now await the US retail sales report and a speech by Fed Chairman Jerome Powell later in the day for further direction on the outlook for the economy and monetary policy. (Newsmaker23)

Source: FXstreet