Silver continues to rise for the third day in a row
Silver prices continued to rise during trading on Tuesday, recording gains for the third consecutive session, exceeding $79 per ounce, amid growing demand for safe havens and prices heading towards new historical levels.
Venezuela crisis supports demand for gold and silver
Silver gains were driven by rising geopolitical risks following the US attack on Venezuela and the arrest of President Nicolas Maduro, which added a new dimension of uncertainty in global markets.
The political turmoil has led investors to flock to safe-haven assets, primarily gold and silver, amid fears that tensions in Latin America could widen.
US President Donald Trump has reportedly threatened a second military action if Venezuela's interim president, Delcy Rodriguez, does not comply with US demands, adding to the uncertainty in the markets.
Weak U.S. data and accommodative statements boost metals gains
The precious metals market received additional support after the release of weaker-than-expected US manufacturing data, along with accommodative comments from a Federal Reserve member on labor market risks.
The data boosted investors' bets on continued loose monetary policy, supporting silver and gold prices as markets await a series of U.S. jobs reports due this week.
U.S. interest rate expectations limit volatility
Despite the bullish momentum, markets are currently pricing in an over 80% chance of the Federal Reserve keeping interest rates unchanged at its next meeting, which could limit the pace of sharp rallies, without altering the overall positive sentiment for silver.
Supply and demand fundamentals support silver
prices In addition to geopolitical and monetary factors, silver's rally is fueled by:
- Tight supply concerns.
- Strong industrial demand, especially in the energy and technology sectors.
- Growing investment flows towards precious metals.
Together, these factors are supporting silver prices, with the outlook remaining positive in the near to medium term.
Ultimately, silver's continued gains reflect the strength of the uptrend in a global environment characterized by rising geopolitical risks and increasing expectations for continued accommodative monetary policy.
With US economic data on the horizon, silver remains vulnerable to further volatility, with an overall bias towards continuing to make new historic highs as long as supportive factors persist.
