Another ATH! Silver Rises Amid Global Turmoil
Silver prices (XAG/USD) continued their rally on Wednesday, trading around $90.50, up around 4.3% intraday. Silver recorded a fourth consecutive day of gains and set a new record high, driven by a combination of macro and geopolitical factors that have rekindled the demand for safe-haven assets.
The biggest support came from escalating tensions in Iran. A wave of protests fueling high inflation, a weakening Rial, and corruption concerns have sparked a crackdown that reportedly claimed many casualties. The situation escalated after US President Donald Trump signaled that military action could be considered if violence against the demonstrations continued—making global markets more cautious.
Beyond geopolitics, investors are also focusing on the independence of the Federal Reserve. The emergence of criminal charges against Fed Chairman Jerome Powell related to a proposed central bank office project sparked concerns that US monetary policy could become increasingly politicized. Powell himself denounced the move as politically motivated, and this sentiment contributed to flows into precious metals like silver.
Pressure on the dollar was initially strong, although it has since stabilized after support from several major global central banks was released. However, overall, the market still views silver as attractive due to expectations of a Fed interest rate cut, the potential for falling real yields, and continued strong physical demand. As long as the downturn persists, silver has the potential to remain at high levels. (alg)
Source: Newsmaker.id
