Silver Price Forecast: XAG/USD holds gains above $31.00 due to renewed safe-haven demand

• Silver price surged as escalating US-China trade tensions reignited safe-haven demand.
• President Trump announced an immediate tariff hike on Chinese imports to 125% shortly after China raised duties.
• China's Consumer Price Index fell 0.1% YoY in March, missing expectations for a 0.1% increase and extending February's 0.7% drop.

Silver price (XAG/USD) continues to climb for the second straight day, trading near $31.10 per troy ounce during Thursday's Asian session. The grey metal surged nearly 4% in the previous session, fueled by renewed safe-haven demand following escalating US-China trade tensions.

US President Donald Trump announced an immediate hike in tariffs on Chinese imports to 125%, shortly after China raised reciprocal duties on US goods to 84%. This tit-for-tat escalation overshadowed a broader trade de-escalation effort, where the US had temporarily lowered tariffs to 10% for 90 days to facilitate negotiations with other countries.

Meanwhile, markets are digesting the latest Federal Open Market Committee (FOMC) minutes, which suggested near-unanimous concern among policymakers over the dual threat of rising inflation and slowing growth--highlighting potential "difficult tradeoffs" for the Fed.

The non-yielding Silver metal may attract fresh buying interest following the release of China'sthat Consumer Price Index (CPI) data, which reinforces dovish expectations for the People's Bank of China (PBoC) policy outlook. China's CPI fell 0.1% year-over-year in March, missing forecasts of a 0.1% rise and following a 0.7% drop in February. On a monthly basis, CPI declined 0.4%, steeper than both February's 0.2% decrease and market expectations. Additionally, the Producer Price Index (PPI) slipped 2.5% year-over-year, exceeding the previous 2.2% drop and the projected 2.3% decline, signaling continued deflationary pressures in the economy.

Despite intensifying trade frictions, Fed officials emphasized a data-dependent approach to policy. The CME FedWatch tool shows that markets are currently pricing in a 40% chance of a rate cut at next month's meeting. Investors now turn their attention to upcoming US CPI and PPI data on Friday for further clarity on the Fed's rate path.