Silver Rises for 3rd Day, Tariffs & Iran Lift Safe Havens
Silver prices (XAG/USD) continued their rally for the third consecutive day on Friday (February 27th), gaining nearly 3% to trade around $91.39. This surge occurred as market participants shifted to a more defensive stance after US producer inflation data showed price pressures remained stubborn, while tariff uncertainty and geopolitical tensions again boosted safe haven demand.
The US Producer Price Index (PPI) data for January came in hotter than expected. The headline PPI rose 0.5% (MoM), beating expectations of 0.3%, while the annual rate came in at 2.9% (YoY)—higher than the market forecast of 2.6%.
Most notably, the services component drove the surge: the services index rose 0.8%, led by a 2.5% jump in trade services, with professional and commercial equipment wholesaling margins rising 14.4%—reinforcing the notion that businesses are beginning to pass on tariff costs to prices.
For core measures, the core PPI, often used as a market reference, also strengthened by 3.6% (YoY), above the previous month's 3.3% and the consensus of 3.0%.
In addition to inflation, two other headlines fueled silver. First, uncertainty over US tariffs—including a 10% global tariff scheme that could be increased to 15% for some countries—made the market more protective.
Second, geopolitical risks: US-Iran nuclear talks have yet to provide any certainty that truly calms the market, so precious metals remain the preferred hedge.
Finally, safe-haven sentiment was fueled by reports that the US State Department authorized the departure of non-essential personnel and their families from the US mission in Israel, with an appeal to consider leaving while commercial flights are still available. This headline triggered a swift reaction in gold and silver.
Source: Newsmaker.id
