Silver Shines: Geopolitics & the Fed Lead the Way
Silver prices climbed to around $79 per ounce on Tuesday, marking a third straight session of gains and moving closer to a record high. The move signals steady buying interest, especially as investors continue to favor safe-haven assets amid heightened global uncertainty.
The rally was largely driven by rising geopolitical tensions following the US military operation in Venezuela and the arrest of President Nicolás Maduro. Market nerves increased further after reports suggested President Donald Trump could consider additional action if the interim government in Caracas fails to meet Washington’s demands.
On the macro side, silver also benefited from a softer US dollar after weaker-than-expected US manufacturing data. Dovish remarks from Federal Reserve officials—highlighting potential risks in the labor market—have pushed traders to reassess the outlook for rate cuts, even if the timing remains uncertain.
Attention now shifts to a busy slate of US labor-market data this week, which could shape the next move across currencies and precious metals. Still, markets currently see the most likely outcome for the Fed’s end-of-month meeting as a rate hold, with probabilities remaining above 80%.
Beyond geopolitics and interest-rate expectations, silver has its own fundamental tailwinds. Tight supply, resilient industrial demand, and ongoing investment inflows into precious metals are adding fuel—helping silver stay strong even as broader markets swing between risk-on and risk-off.
Source : Newsmaker.id
