- Silver price receives support from safe haven flows amid rising tensions in the Middle East.
- Israel attacked the offices of Hezbollah’s al-Qard al-Hassan financial institution in southern Beirut.
- Non-yielding Silver gains ground due to the easing of monetary policies by major central banks.
The price of Silver (XAG/USD) extends its winning streak for the fifth consecutive day, trading around $34.10 during the Asian session on Monday. This bullish trend is driven by safe haven demand amid rising geopolitical tensions in the Middle East.
Lebanese media report that Israel has launched a new series of airstrikes in southern Beirut, targeting the offices of Hezbollah’s al-Qard al-Hassan financial institution. Additionally, the US government has launched an investigation into the unauthorized leak of classified documents detailing Israel’s military preparations for a possible attack on Iran.
Furthermore, the easing of monetary policies by major central banks is driving up non-yielding Silver prices. On Monday, the People’s Bank of China (PBoC) reduced the 1-year LPR from 3.35% to 3.10% and the 5-year LPR from 3.85% to 3.60%. Last week, the European Central Bank (ECB) also chose to cut its interest rates by 25 basis points.
The Bank of Canada (BoC) is widely anticipated to implement a significant 50 basis point interest rate cut at its next monetary policy meeting on Wednesday. Recent inflation data suggests that both the Bank of England (BoE) and the Reserve Bank of New Zealand (RBNZ) could consider possible rate cuts next month. Additionally, the US Federal Reserve (Fed) is expected to reduce interest rates by 50 basis points by the end of 2024.
Regarding the US elections, markets seem optimistic about the victory of Republican candidate Donald Trump in the 2024 presidential election. Trump’s tax and trade policies are considered inflationary and favorable for the US Dollar (USD), which could negatively affect the demand for Silver. A stronger US Dollar makes Silver more expensive for buyers using foreign currencies, which could reduce their purchasing power.
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.
