Silver Nears $90, Global Heats Up
Silver prices (XAG/USD) continued their rally for the fourth consecutive day on Wednesday. In the Asian session, silver rose to near $90 per troy ounce, setting a new record high as demand for safe-haven assets remained strong.
The main driver came from escalating geopolitical risks. Global tensions have made investors more defensive, and silver has also benefited from the buying flow, seen as a safe haven during times of market uncertainty.
The situation in Iran has been a major focus. Waves of protests have erupted due to economic pressures—ranging from high inflation, the depreciation of the rial, and issues of corruption—and have reportedly resulted in numerous casualties. This situation has made the market increasingly sensitive to potential escalation.
US President Donald Trump further fueled the situation by warning of possible military action if violence against demonstrators continues. Such threats typically immediately increase the "risk premium" and strengthen demand for safe havens.
Meanwhile, the market has also been shaken by the issue of the Fed's independence. The emergence of legal charges against Fed Chairman Jerome Powell raised investor concerns that the central bank could become increasingly politicized—and such situations typically boost interest in safe-haven assets like precious metals.
The US dollar weakened sharply as these concerns peaked. However, the dollar quickly recovered after global central bank leaders expressed support for Powell, signaling that central bank independence remains intact and will not be easily compromised.
The combination of heated geopolitics and sensitive monetary policy issues keeps silver on the front foot. If tensions escalate in Iran or the Fed issue re-escalates, silver could potentially strengthen further—but if risk appetite subsides, the market is also vulnerable to a correction due to overcrowding.
5 Key Points:
- Silver rises for a fourth day, approaching $90 and setting a new record.
- Safe-haven demand strengthens due to geopolitical tensions.
- Iranian protests heighten market concerns about escalation.
- The Fed's independence issue also supports interest in precious metals.
- The dollar fell briefly and then recovered after global central banks supported Powell. (asd)
Source: Newsmaker.id
