Silver (XAG/USD) hit a fresh high of $70.00 during Asian trading on Tuesday, changing hands around $69.70 per troy ounce. The precious metal continues to benefit from safe-haven demand amid rising geopolitical tensions between the United States and Venezuela.
Geopolitical tensions support safe-haven flows
US President Donald Trump stated on Monday that the US may keep or sell oil seized off the Venezuelan coast and confirmed that the seized ships would also be retained.
Meanwhile, Ukraine continues strikes on Russian energy infrastructure, with recent attacks damaging two vessels and two piers, sparking a fire in a Black Sea coastal village. These developments have reinforced risk-off sentiment, boosting demand for safe-haven assets like Silver.
Fed easing expectations underpin non-yielding assets
Silver also benefits from expectations that the Federal Reserve will continue easing policy. Fed Governor Stephen Miran said in a Bloomberg TV interview that recent data aligns with his outlook and that he does not foresee a near-term recession, while warning that failure to ease policy could increase recession risks. Markets are increasingly pricing in further Fed rate cuts next year, supporting demand for non-interest-bearing metals.
Focus on US GDP data
Traders are closely monitoring the upcoming US Gross Domestic Product (GDP) annualized reading for the third quarter, expected later on Tuesday. The US economy is projected to have grown at an annualized pace of 3.2% in Q3, down from 3.8% in Q2. A stronger-than-expected print could temporarily boost the US Dollar and weigh on Silver in the near term.
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