Silver Price Forecast: XAG/USD maintains position above $31.50 due to risk-off mood

• Silver price finds support from safe-haven demand as concerns over a global tariff war escalate.
• The White House confirmed that President Trump has signed an order raising tariffs on Chinese imports to 20%. 
• Canada's Prime Minister's Office announced plans to impose retaliatory 25% tariffs on US imports if Washington's tariffs take effect.

Silver price (XAG/USD) extends its gains for the second consecutive session, trading near $31.70 per troy ounce during Asian hours on Tuesday. Silver gains traction as investors seek safe-haven assets amid rising risk aversion, while market participants assess the economic outlook as US President Donald Trump advances plans to impose tariffs on key trade partners.

On Monday, the White House confirmed that President Trump signed an order raising tariffs on Chinese imports to 20%. However, similar measures for Mexico and Canada remain pending. Trump also reiterated that reciprocal tariffs will take effect on April 2 for countries that impose duties on US goods.

In response, Canada's Prime Minister's Office announced that retaliatory tariffs on US imports would be imposed starting Tuesday, provided US tariffs go into effect. Initially, Canada will implement a 25% tariff on US imports worth C$30 billion.

Meanwhile, China's Commerce Ministry stated early Tuesday that it would take "necessary countermeasures" to defend its economic interests. The ministry reaffirmed its strong opposition to the US decision to introduce an additional 10% tariff on Chinese imports starting Tuesday.

Recent US factory data provided mixed signals. The ISM Manufacturing PMI fell to 50.3, slightly below expectations of 50.5 and down from January's 50.9. Conversely, S&P Global's final Manufacturing PMI for February exceeded forecasts at 52.7, improving from its preliminary estimate.

Investors now turn their attention to the ADP employment report on Wednesday and the Nonfarm Payrolls report on Friday for further insights into the Federal Reserve's (Fed) interest rate outlook.