• Sun. Nov 3rd, 2024

XAG/USD Rally: Silver Surpasses $34.00 Driven by Safe-Haven Investment

news

Featured Brokers

Liquidity

Min. Deposit: 100 USD

Regulated: NFA, CFTC

Broker Type: ECN, STP

AvaTrade

Min.Deposit: $100

Regulated: CySEC

Broker Type: ECN, STP

FBS

Min.Deposit: $1

Regulated: ASIC, IFSC

Broker Type: ECN, STP

JustMarkets

Min.Deposit: 1 USD

Regulated: FSA, CySEC

Broker Type: STP

  • During crisis periods in the region, exchange rates are supported by safe haven flows.
  • Israel’s attacks on sites linked to Hezbollah’s financial markets in Beirut have raised fears of an escalation in the conflict.
  • With just two weeks left until the US elections, demand for safe havens is increasing.

Silver (XAG/USD) rose on a consecutive day in the Asian session on Tuesday, trading around $34.10 an ounce. Demand for the safe-haven currency has surged amid rising tensions as Israel’s targeting of sites in Beirut linked to Hezbollah’s financial markets has stoked fears of a possible clash. The operation was revived after an Iranian drone exploded near Prime Minister Benjamin Netanyahu’s residence. The Israeli army also stepped up operations on Monday, surrounding hospitals and shelters for displaced people in the northern Gaza Strip, disrupting public services, Reuters reported.

U.S. Secretary of State Antony Blinken arrived in Israel on Tuesday, the first stop of a Middle East tour aimed at encouraging peace talks in Gaza and discussing the region’s future after the death of Hamas leader Yahya Sinwar.

With U.S. elections approaching in two weeks, demand for safe money continues to grow. Presidential candidate Kamala Harris and Republican challenger Donald Trump hit the campaign trail on Monday with very different messages as they try to win over voters who haven’t made up their minds before Election Day.

The loose monetary policies of major central banks have also supported inflation. The Bank of Canada (BoC) is expected to announce a large 50 basis point rate cut at its monetary policy meeting on Wednesday. It will decide whether to cut rates next month. The Federal Reserve (Fed) is also expected to cut interest rates by 50 basis points by the end of 2024.