Silver Price Forecast: XAG/USD rises to near $28.50 due to escalated geopolitical tensions

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Silver News

XAGUSD,Commodities,Macroeconomics

Silver price extends its gains for the second consecutive session, trading around $28.30 per troy ounce during the early European session on Tuesday.

Silver price appreciates due to escalated tensions in the Middle East on Tuesday. Israeli troops have advanced into the northern region of Gaza in an attempt to retake territory from Hamas militants. Fed officials indicated maintaininghigher rates for longer, which may undermine the non-yielding assets like Silver. The increase in the value of the safe-haven Silver can be attributed to the escalating geopolitical tensions in the Middle East.

Fed Vice Chair Philip Jefferson reiterated this stance on Monday, advocating for keeping current interest rates until signs of inflation easing emerge. Higher interest rates typically dampen the attractiveness of non-yielding assets such as Silver. Later in the day, traders will likely monitor the US Producer Price Index , a crucial economic indicator. The PPI report could have a significant impact on the US market.

 

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