XAG/USD rises to near $36.50 amid Israel-Iran war
Silver price (XAG/USD) moves higher to near $36.50 during European trading hours on Tuesday. The white metal trades firmly as the aerial war between Israel and Iran has increased demand for safe-haven assets, such as Silver.
The Iranian military continues to launch airstrikes on Israel despite soughing after its Middle East peers to urge US President Trump to use his influence on Israeli Prime Minister Benjamin Netanyahu to push for an immediate ceasefire.
Meanwhile, United States (US) President Donald Trump has asked Vice President JD Vance and Middle East envoy to offer to meet with the Iranians this week at the sidelines of the G7 meeting, The New York Times reported.
This week, the monetary policy announcement by the Federal Reserve (Fed) on Wednesday is also a key trigger that will contribute in directing the new move in the Silver price.
According to the CME FedWatch tool, the Fed is expected to hold interest rates steady in the current range of 4.25%-4.50%.
Investors will look for cues about when the Fed will start reducing interest rates. A higher-for-longer interest rate stance by the Fed bodes poorly for non-yielding assets such as Silver.
At the press time, the US Dollar Index (DXY) trades broadly sideways around 98.20.
Source : Fxstreet