Silver Eases After Record High, Safe Havens Begin to Retreat
Silver prices (XAG/USD) began to retreat on Thursday (January 15th) after briefly hitting a new record near US$94/oz in the early session. Amid profit-taking, the XAG/USD pair fell to US$91.70/oz, down around 1.7% on the same day.
This correction occurred as safe-haven sentiment waned slightly. US President Donald Trump said recent reports indicated that violence in the crackdown in Iran was easing and that there were no plans for mass executions. This helped calm market concerns about a rapid military escalation, thus reducing demand for defensive assets like silver.
Additional pressure came from stronger-than-expected US economic data. Signs of a still-strong economy led the market to believe the Federal Reserve was likely to hold interest rates longer, which typically boosts the dollar and puts pressure on precious metals, especially those sensitive to real yield movements.
From a policy perspective, the absence of new tariff announcements on imports of critical minerals also helped ease trade tensions, reducing the market's need for safe-haven assets.
Despite the correction, the medium-term outlook for silver remains positive. Several analysts believe the rally since the start of the year remains supported by a combination of a supply deficit, strong industrial demand, and the "tail effect" of gold's strengthening. With these structural factors, silver is expected to remain at high levels, although a short-term consolidation phase could potentially continue. (yds)
Source: Newsmaker.id
