XAG/USD climbs 0.94% to $59.35 as geopolitical risks outweigh inflation concerns and higher oil prices.
Silver (XAG/USD) advanced 0.94% to $59.35 on Wednesday, driven by escalating geopolitical tensions in the Middle East. Safe-haven demand offset concerns over rising inflation expectations, which typically pressure non-yielding assets like precious metals.
Oil prices surged to $86.60 per barrel after the closure of the Bab el-Mandeb Strait disrupted global energy shipments. The disruption reignited fears of supply shortages, reinforcing expectations that central banks may maintain restrictive monetary policies. Despite this, silver remained supported as investors sought defensive assets amid heightened uncertainty.
The conflict between the US and Iran, along with risks to energy flows, continued to bolster inflows into traditional safe havens. Silver’s resilience highlights its role as a hedge against geopolitical and inflationary risks.