Risk-Off Returns, Silver Lifted by Safe-Haven Demand
Silver extended its rally in Tuesday’s trading, with XAG/USD holding above $78.50 and rising more than 3% on the day. The move adds to gains from recent sessions as markets shift back into a more cautious stance: investors rotate toward safe assets, while expectations of easier US monetary policy continue to support precious metals.
The rally is mainly driven by renewed geopolitical anxiety. Developments in Venezuela — from the arrest of Nicolás Maduro by US authorities to the legal battle now unfolding in New York — have pushed traders to increase hedging and risk protection. Sentiment turned even more defensive after President Donald Trump suggested Washington could take further action if Venezuela’s interim government fails to meet US demands. Headlines like these typically boost demand for safe havens, including silver.
Macro conditions are also helping. Markets still see room for potential Fed rate cuts in 2026. When rate expectations fall, the opportunity cost of holding non-yielding assets decreases — a supportive backdrop for silver. A softer US dollar has added another tailwind, making dollar-priced commodities more attractive.
Source: Newsmaker.id
