- Silver price appreciates due to safe haven flows amid rising geopolitical tensions in the Middle East.
- Risk aversion is strengthened by the assassination of Yahya Sinwar, the militant leader of Hamas.
- Demand for non-yielding Silver increases due to the prevailing likelihood of interest rate reductions by major central banks.
The price of Silver (XAG/USD) extends its winning streak for the fourth consecutive day, hovering around $32.00 per troy ounce during the Asian trading session on Friday. The price of the gray metal receives support from safe haven flows amid rising tensions in the Middle East.
The Israeli military and Shin Bet security service confirmed Thursday that Yahya Sinwar, the Gaza Strip chief of the Palestinian Islamist group Hamas, was killed by Israeli forces during an operation in southern Gaza on Wednesday. Sinwar’s death has sparked concern among families of Israeli hostages taken to Gaza by Hamas, who fear the killing of the militant leader could increase the risk to their loved ones, according to Reuters.
Non-yielding assets like Silver are gaining demand due to the prevailing sentiment of interest rate reductions by major central banks. The US Federal Reserve (Fed) is expected to cut interest rates by 50 basis points by the end of 2024. According to the CME’s FedWatch tool, there is a 90.8% probability of a 25-basis point rate cut. basis points in November and a 74.0% probability of another cut in December.
On Thursday, the European Central Bank (ECB) reduced its main refinancing operations rate by 25 basis points to 3.4%. Recent inflation data also indicates that both the Bank of England (BoE) and the Reserve Bank of New Zealand (RBNZ) could consider possible rate cuts next month.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
