Silver Price Forecast: XAG/USD Retreats Below $32.50 as Trade Sentiment Stabilizes

April 17, 2025 – DailyForex.pk
Silver (XAG/USD) came under pressure in Thursday’s Asian session, falling to around $32.30 per troy ounce, as global risk sentiment improved. The pullback comes after U.S. President Donald Trump announced tariff exemptions for several key technology products, reducing immediate fears of a full-scale trade escalation with China.

📉 XAG/USD Pulls Back After Exemptions on Tech Goods

Trump’s announcement covered exemptions on products such as:

Smartphones
Computers
Semiconductors
Solar panels
Flat-panel displays

These goods, many of which are manufactured in China, were previously listed under proposed reciprocal tariffs. The exemptions eased market fears, leading to a decline in safe-haven demand for silver.

Despite the move, silver’s downside appears limited due to the ongoing complexities in U.S. trade policy.

🔍 New Trade Probe Adds Pressure and Uncertainty

Simultaneously, Trump launched a new investigation into potential tariffs on critical minerals, including:

Copper
Pharmaceuticals
Lumber
Semiconductors

This fresh probe signals a deeper push into trade protectionism and highlights U.S. dependency on foreign production, especially from China.

The dual policy—offering exemptions while threatening new tariffs—has left markets uncertain and continues to support some safe-haven demand for silver.

💱 Dollar and Treasury Yields Stay Subdued

The U.S. Dollar Index (DXY) remains soft around 99.50, adding indirect support to silver prices. Meanwhile:

2-year Treasury yield hovers at 3.80%
10-year Treasury yield stands near 4.30%

Low yields reduce the opportunity cost of holding non-yielding assets like silver, helping to cushion downside pressure.

🧠 Technical Outlook: XAG/USD Below $32.50, Eyes Support

With XAG/USD now trading around $32.30, traders are watching key support zones:

Immediate support: $32.00
Major support: $31.50
Resistance: $32.80 – $33.00

Silver’s direction in the coming sessions will largely depend on how markets interpret the evolving U.S.-China trade situation and any further announcements from the White House.

📌 Conclusion: Silver Faces Headwinds But Uncertainty Still Lingers

While tariff exemptions have improved short-term risk sentiment, the initiation of new trade investigations keeps market volatility elevated. With the U.S. dollar soft and bond yields subdued, silver may find a support floor even as short-term corrections play out.

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Hamza Shah