Silver holds above $30.00 on safe-haven demand
Silver (XAG/USD) prices continued its upward momentum, rising for the sixth straight day to trade near $30.10 per troy ounce, nearing a three-week high during the Asian session on Thursday (9/1). The precious metal, often considered a safe-haven asset, found support amid uncertainty surrounding inflation and potential tariffs under President-elect Trump, as highlighted by the US Federal Reserve (Fed).
In addition, strong growth in 2024 has boosted industrial demand for Silver, which is on track to surpass 700 million ounces (Moz) for the first time. The surge is driven by its critical role in solar technology, electric vehicles (EVs), 5G networks, and consumer electronics, positioning Silver as a vital material to advance innovation and support the transition to clean energy solutions.
In addition, rising geopolitical tensions have added to market volatility, prompting investors to turn to precious metals such as Silver for stability. According to Reuters, a Russian-led bomb attack on Wednesday killed at least 13 people and injured 63 others in the southeastern Ukrainian city of Zaporizhzhia, further fueling safe-haven demand.
The gains in the non-yielding metal could be limited as long-term US Treasury yields continue to rise on ample supply. The 10-year Treasury rose to 4.73%, while the 30-year Treasury was near 4.96% on Wednesday following the Federal Open Market Committee (FOMC) Minutes from its December meeting.
The FOMC Minutes showed that Fed policymakers expressed concerns about inflation and the potential impact of President-elect Donald Trump’s policies. Fed officials indicated that they would move more slowly in cutting interest rates due to the uncertainty. Fed officials have reduced the expected rate cuts in 2025 to two from four in their previous estimates at the September meeting.
Source: FXStreet
