- Silver price jumps higher on renewed tensions between Israel and Iran.
- Israel raised concerns over Iran’s reconstituting its nuclear facilities.
- The Fed is unlikely to cut interest rates in the January policy meeting.
Silver price (XAG/USD) trades 2.5% higher to near $69.00 during the Asian trading session on Monday, the highest level ever seen. The white metal strengthens as investors shift to a safe-haven fleet on renewed tensions between Israel and Iran.
According to a report from NBC News, Israeli officials have grown increasingly concerned that Iran is expanding production of its ballistic missile program and reconstituting its nuclear facilities, which were damaged by Israeli military strikes earlier this year, and are preparing to brief United States (US) President Donald Trump about options for attacking it again.
The scenario of geopolitical tensions increases demand for safe-haven assets, such as Silver.
On the Federal Reserve’s (Fed) monetary policy front, investors remain confident that the central bank will not reduce interest rates in the January policy meeting. Fed dovish expectations for the January meeting have not accelerated, despite the release of the soft US inflation data for November.
On Thursday, the US Consumer Price Index (CPI) data for November showed that the headline inflation cooled down to 2.7% year-on-year (YoY) from 3% in October. Economists expected the inflation data to come in higher at 3.1%. The so-called core reading, which strips out volatile food and energy items, dropped to 2.6% from estimates and the prior reading of 3%.
Silver technical analysis
