Commodities
Home›Commodities›Precious Metals›Silver edges higher amid Middle East tensions and infl…
Silver edges higher amid Middle East tensions and inflation worries
Silver was quoted near $59.35, up 0.9% on the day, as safe-haven buying offset concerns that higher oil could lift inflation expectations.
Silver prices moved higher, with XAG/USD trading around $59.35 on Wednesday and up 0.94% for the day, according to FXStreet. The rise reflects persistent safe-haven demand tied to escalating geopolitical tensions in the Middle East, even as inflation concerns lingered.
FXStreet linked the tone to developments in regional energy flows. West Texas Intermediate oil extended its rally to about $86.60 a barrel after the closure of the Bab el-Mandeb Strait intensified worries about global supply, after which a maritime embargo was announced by Yemen's Iran-backed Houthi movement in retaliation for Saudi actions.
The higher energy-price backdrop is raising expectations of a renewed inflation wave, a dynamic that could keep major central banks in restrictive policy longer. That environment typically weighs on non-yielding assets like silver through higher bond yields, but FXStreet said investors have continued to favor precious metals as defensive positions amid uncertainty.
Looking ahead, FXStreet said traders will monitor Thursday's European Central Bank monetary policy decision, where rates are widely expected to be left unchanged. Market focus will be on ECB President Christine Lagarde's comments for guidance on the inflation outlook and the future path of policy.
Latest closeSilver $59.51 ▲1.1%