Silver price (XAG/USD) trades firmly in positive territory near $76.55 during Asian trading on Tuesday, extending gains as heightened geopolitical tensions drive investors toward safe-haven assets. The move comes after the United States captured Venezuelan President Nicolas Maduro, an event that has injected fresh uncertainty into global markets.
Geopolitical shock lifts safe-haven demand
The removal of Maduro by US President Donald Trump has added a new layer of geopolitical risk. According to the Guardian, Trump warned that Washington could launch a second military strike if Venezuela’s interim president, Delcy Rodríguez, fails to meet US demands.
Maduro, meanwhile, pleaded not guilty on Monday to US narco-terrorism charges, setting the stage for an unprecedented legal confrontation with far-reaching political and economic consequences.
“The situation around Venezuela has clearly reactivated safe-haven demand,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
Fed rate cut expectations add to silver’s upside
Beyond geopolitics, expectations of looser US monetary policy are also supporting Silver. Financial markets are currently pricing in two 25-basis-point interest rate cuts from the US Federal Reserve (Fed) in 2026. Lower interest rates tend to reduce the opportunity cost of holding non-yielding assets such as Silver, making the metal more attractive to investors.
US jobs data in focus
Market participants are now turning their attention to the US December labor market report due on Friday, which could shape near-term Fed policy expectations.
Nonfarm Payrolls (NFP) are forecast to rise by 55,000 in December, while the Unemployment Rate is expected to edge down to 4.5% from 4.6% in November. A stronger-than-expected outcome could bolster the US Dollar (USD) and potentially limit further gains in USD-denominated Silver in the short term.
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