Silver Nears Record, CPI Key
Silver prices (XAG/USD) remain strong and stable near all-time highs. In Tuesday's European session, silver traded in the range of $85.6–$85.8 per troy ounce, slightly below its latest record high, as market participants began to exercise restraint ahead of the release of US inflation data.
Today's main focus is the December US CPI data. This inflation figure will serve as a "compass" for the market: if inflation declines, the chances of a Fed rate cut increase—typically this puts pressure on the dollar and makes it easier for precious metals like silver to rise. However, if inflation is hotter than expected, the dollar could strengthen, and silver is at risk of a short-term correction.
Even so, demand for safe-haven assets remains a cushion. Geopolitical tensions have flared again after Trump threatened 25% tariffs on countries that continue to do business with Iran, amidst major protests there. At the same time, the issue of the Fed's independence has also made investors cautious, following the emergence of legal threats involving Fed Chairman Jerome Powell—a situation that makes the market even more sensitive to political and policy risks.
In conclusion, silver still has the potential to continue its upward trend because safe haven sentiment remains strong and expectations of interest rate cuts have not disappeared. However, because prices are near record levels and conditions are starting to heat up, movements could become more volatile: if the CPI is supportive, silver could potentially try to break through another record; if the CPI surprises, a correction could occur—and that's usually what traders see as the next "test of buying interest."
Source: Newsmaker.id
