XAG/USD extends gains for a fourth session amid geopolitical tensions and institutional shifts into tangible assets despite inflation concerns.
Silver prices rose to $59.70 per troy ounce in Asian trading, marking a fourth consecutive session of gains. The rally persists despite heightened expectations for higher interest rates, driven by institutional investors seeking safe-haven assets amid escalating geopolitical risks.
Prior sessions saw silver trade below $59.00, with consensus expectations leaning toward a pullback due to inflation fears. Comparable periods of geopolitical tension, such as the 2020 U.S.-Iran standoff, saw silver surge over 10% in weeks, though current upside may be capped by elevated rate hike bets.
Geopolitical developments, including threats to Red Sea shipping routes and mutual military strikes between the U.S. and Iran-backed groups, have intensified demand for non-yielding metals. Fed officials’ recent hawkish rhetoric on inflation further complicates the outlook for silver’s trajectory.