Silver (XAG/USD) traded around $32.30 per troy ounce during the Asian session on Thursday (4/17), paring some of its gains from the previous day. The precious metal came under pressure as global risk sentiment improved following US President Donald Trump's announcement of exemptions for key technology products from newly proposed "reciprocal" tariffs.

The exemptions, which cover smartphones, computers, semiconductors, solar cells, and flat-panel displays, primarily benefit goods manufactured in China. However, Silver's downside remained limited as Trump simultaneously launched an investigation into potential tariffs on critical minerals, further escalating trade tensions with China. The investigation also extends to sectors such as copper, pharmaceuticals, lumber, and semiconductors, highlighting the limited domestic production capacity of the US in these areas.

The safe-haven demand for Silver was also supported by ongoing uncertainty surrounding US trade policy, along with subdued demand for the US Dollar (USD) and Treasury securities. The US Dollar Index (DXY) hovers around 99.50, while the yields on the 2-year and 10-year US Treasury bonds are at 3.80% and 4.30%, respectively.

Meanwhile, dovish signals from major central banks continue to support non-yielding assets such as bullion. Lower-than-expected inflation in the US, Canada, the UK, India and the Eurozone in March—along with the potential for a PBoC rate cut this quarter—further strengthen the case for the precious metal. (Newsmaker23)

Source: FXstreet