Silver Rises Slightly, Geopolitics Maintains Buying Interest
Silver prices continued their rally on Thursday (February 19th), holding above the $78 per ounce area as the market reconsiders the direction of US interest rate policy amid continued solid economic data and rising geopolitical tensions. In the latest update, silver was around $78.30/oz, up about 1.4%.
The main support came from a combination of "risk-off" sentiment that increases demand for safe-haven assets, especially when geopolitical risks resurface. However, silver's upside is not entirely clear due to the continued strength of the US dollar—a factor that typically pressures dollar-based precious metals.
The tone of the FOMC meeting minutes from January also shaped sentiment: several officials assessed inflation risks as tilted to the upside and left open the possibility that interest rates would need to remain tight for longer—and even left room for additional tightening if inflation resurfaces. These signals have made the market more cautious about setting a scenario for aggressive rate cuts.
On the data front, US initial jobless claims fell to 206,000, reinforcing the view that the foundations of economic demand remain quite strong. The combination of "resilient" data and the Fed's tighter signals keeps the dollar firm, so silver tends to move higher at a more measured pace.
Looking ahead, market attention turns to the release of the Fed's preferred inflation indicator, Core PCE, which has the potential to determine whether the dollar strengthens or weakens again—and ultimately, whether silver can re-break and stabilize above $78.
Source: Newsmaker.id
