- Silver price edges lower to around $89.25 in Tuesday’s early Asian session.
- Trump vows to respond to Riyadh embassy attack, raising fears of wider war in the Middle East.
- The upbeat US ISM Manufacturing PMI provides some support to the US Dollar.
Silver price (XAG/USD) retreats to near $89.25 during the early Asian session on Tuesday. The white metal faces significant volatility amid escalaring tensions in the Middle East following US-Israeli strikes on Iran. Federal Reserve (Fed) officials are set to speak later on Tuesday, including New York Fed President John Williams, Kansas City Fed President Jeff Schmid and Minneapolis President Neel Kashkari.
The United States (US) and Israel hit thousands of targets inside Iran, continuing their joint campaign after they killed its supreme leader, Ayatollah Ali Khamenei. Iran has launched retaliatory missile and drone strikes against Qatar, the UAE, Kuwait and the US Embassy in Riyadh, Saudi Arabia.
US President Donald Trump said on Tuesday that people will find out soon what the retaliation will be to an attack on the US embassy in Riyadh and over the deaths of US military personnel during the Iran conflict. Rising tensions in the Middle East could boost safe-haven assets such as Silver.
On the other hand, renewed US Dollar (USD) demand could undermine the USD-denominated commodity price. The US Manufacturing Purchasing Managers’ Index (PMI) reading for February came in stronger than expected. This report might reinforce the US Federal Reserve (Fed) to adopt a more hawkish stance and keep the interest rate higher for longer.
