Silver (XAG/USD) climbs to around $75.40 during Monday’s Asian trading session, supported by heightened safe-haven demand following the United States’ military strike on Venezuela. Market participants are closely watching developments after Venezuelan President Nicolás Maduro and his wife were captured and are scheduled to appear in federal court later today.
Over the weekend, the US carried out a large-scale operation in Venezuela, with President Trump confirming the capture and removal of Maduro and his wife from the country. According to The Guardian, Trump also warned that a further military intervention could follow if Venezuela’s interim president, Delcy Rodríguez, fails to meet US demands. These developments have escalated geopolitical risks in the region, supporting safe-haven flows into Silver.
US interest rate expectations underpin silver
In addition to geopolitical drivers, expectations of further US Federal Reserve rate cuts are providing support for the non-yielding precious metal. Financial markets are currently pricing in two quarter-point reductions in 2026. Lower interest rates reduce the opportunity cost of holding Silver, helping to underpin its price.
Key US economic releases to watch
Traders will also monitor the US ISM Manufacturing Purchasing Managers’ Index (PMI) for December, scheduled for later on Monday. A stronger-than-expected reading could bolster the US Dollar, putting near-term pressure on USD-denominated commodities like Silver. Looking ahead, Friday’s Nonfarm Payrolls report will remain a key market mover, likely influencing both USD sentiment and precious metal prices in the coming sessions.
Overall, XAG/USD remains supported by safe-haven flows amid geopolitical tensions, with upside further reinforced by expectations for a dovish Fed policy stance.
Ready to start trading Forex? Join iXBroker today and kick-start your trading journey now!
