- Silver price receives support from safe haven flows amid rising geopolitical tensions.
- Israel has attacked sites linked to Hezbollah’s financial operations in Beirut, raising concerns about an escalating conflict.
- With the US election just two weeks away, demand for safe haven silver is on the rise.
The price of Silver (XAG/USD) continues its winning streak for the sixth consecutive day, trading around $34.10 per troy ounce during the Asian session on Tuesday. Demand for safe haven Silver is rising amid rising tensions, as Israel has attacked sites associated with Hezbollah’s financial operations in Beirut, raising fears of an escalating conflict.
Israel’s possible retaliatory actions against Iran are also back in the spotlight following an Iranian drone raid that detonated near Prime Minister Benjamin Netanyahu’s residence. Additionally, Israeli military forces intensified their operations on Monday, surrounding hospitals and shelters for displaced people in the northern Gaza Strip, which has hindered the delivery of essential aid to civilians, according to Reuters.
US Secretary of State Antony Blinken arrives in Israel on Tuesday as the first stop on a broader Middle East tour aimed at reinvigorating ceasefire talks in Gaza and discussing the region’s future following the death of Hamas leader Yahya Sinwar.
As the tight US election approaches in just two weeks, demand for safe haven Silver continues to rise. On Monday, Democratic presidential candidate Kamala Harris and her Republican rival, Donald Trump, presented starkly different messages on the campaign trail as they sought to win over undecided voters ahead of Election Day.
Additionally, the easing monetary policies of major central banks are supporting non-yielding Silver prices. The Bank of Canada (BoC) is widely expected to announce a significant 50 basis point interest rate cut at its next monetary policy meeting on Wednesday.
Recent inflation data indicates that both the Bank of England (BoE) and the Reserve Bank of New Zealand (RBNZ) could contemplate possible rate cuts next month. Additionally, the US Federal Reserve (Fed) is projected to reduce interest rates by 50 basis points by the end of 2024.
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.
