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22/07/26
26
Silver Rises for Fourth Straight Session on Safe-Haven Demand
Silver extended its advance for a fourth straight session on Wednesday, trading near $60 an ounce during Asian hours. The metal has been drawing support from a broader shift toward defensive positioning, as investors increasingly favor tangible assets amid a tense geopolitical backdrop.
The latest rise comes despite the prospect of higher interest rates, which typically weighs on non-yielding assets such as silver. That pressure has been offset by concerns that intensifying conflict risks could unsettle equity markets and encourage additional safe-haven demand. With tensions still elevated in the Middle East, some institutional investors appear to be moving capital out of risk assets and into precious metals.
At the same time, the upside for silver may be constrained by the inflationary effects of higher oil prices and persistent rate-hike expectations. Washington has signaled a hard line following recent military exchanges, while threats from Iran-backed Houthi militants to disrupt Red Sea shipping have added another layer of uncertainty. Iran has also warned that any US strike on its nuclear facilities would prompt broader retaliation against US and allied targets in the region.
Monetary policy remains another key factor. Fed Chair Warsh has continued to emphasize that inflation is still the central bank’s main concern, a message echoed by several other officials in recent weeks. That cautious tone has reinforced the view that the Federal Reserve is unlikely to rush into easing.
Policymakers are now in their pre-meeting blackout period ahead of next week’s FOMC decision, where rates are widely expected to remain unchanged. Even so, market pricing suggests expectations for further tightening have not faded. According to futures-based estimates, traders see a meaningful chance of at least a quarter-point increase at the September meeting, keeping pressure on precious metals despite silver’s recent momentum.
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