Silver Nears Record $95.50 Amid Geopolitical Tensions
Silver hovered around $95.50 on Tuesday (January 20th), up 1.20% intraday. Previously, silver had hit a new record high of $95.89. This rise occurred as markets were in cautious mode, and investors returned to seeking safe haven assets as geopolitical tensions escalated.
This silver rally was not isolated. The precious metal also rose as tensions between the US and Europe intensified, reviving fears of a transatlantic trade war. This uncertainty prompted many market participants to reduce risk in speculative assets and shift to safe havens like gold and silver.
According to ING, silver's performance since the beginning of the year has been even stronger than gold's, due to a mix of defensive flows and speculative positions. Investor concerns have also been heightened by issues of US trade policy, surging US debt, and increasingly unpredictable political conditions.
Repeated pressure on the Fed has heightened concerns about the central bank's independence. Meanwhile, a weakening US dollar has automatically made dollar-denominated precious metals more attractive.
Coupled with ongoing conflicts in Eastern Europe and the Middle East, geopolitical risks remain high—and silver continues to be a "trigger" for the market's need for protection amid global uncertainty.
Source: Newsmaker.id
