Silver Hits Monthly High Above $32.50 On Safe-Haven Demand
Silver (XAG/USD) prices rose to near $32.60 per troy ounce during Asian trading hours on Thursday (05/22), strengthening for the third straight session. Precious metals, including silver, attracted buyers amid rising safe-haven demand amid growing fiscal concerns in the United States (US).
Moody's downgraded the US credit rating from Aaa to Aa1, following similar downgrades by Fitch Ratings in 2023 and Standard & Poor's in 2011. Moody's also forecast that US federal debt is expected to rise to around 134% of GDP in 2035, up from 98% in 2023, with the budget deficit expected to widen to nearly 9% of GDP. The downgrade was driven by rising debt servicing costs, expanded entitlement programs, and declining tax revenues.
Additionally, ongoing geopolitical unrest in the Middle East dampened risk sentiment and prompted investors to shift to safe haven assets such as Silver. However, Prime Minister Benjamin Netanyahu said that Israel will press ahead with its military campaign to gain full control of Gaza, should the hostages’ return fail. Reuters quoted the Israeli military as saying it would allow 100 aid trucks into the Gaza Strip on Wednesday, as UN officials reported that distribution issues have meant that no aid has reached those in need.
Next week, Ukraine will ask the European Union (EU) to seize Russian assets and impose sanctions on some buyers of Russian Oil. When President Trump withdrew from tightening sanctions, Ukraine will submit an unreported white paper to the EU, asking the 27 member states to take an independent position on sanctions.
Source: FXStreet
