FX.co ★ Silver Resumes Rally on Haven Demand

Silver experienced a significant surge of over 6%, reaching above $110 per ounce on Tuesday, continuing its unprecedented upward trend. The increase can be attributed to rising geopolitical and trade tensions, coupled with an investor shift away from sovereign bonds and currencies, enhancing the appeal of precious metals as a safe-haven asset. Recent developments include US President Donald Trump's threat to escalate tariffs on South Korean goods from 15% to 25%, citing delays in the ally's legislative approval of a trade agreement. Additionally, investors are anticipating the forthcoming decision from the US Federal Reserve on monetary policy. However, this has been somewhat overshadowed by concerns regarding the Fed’s independence and speculation that President Trump might announce a new Chair for the Federal Reserve within the week. The attraction towards silver and other precious metals has also been bolstered by what is referred to as the "debasement trade," as investors are increasingly moving from bonds and currencies to tangible assets amidst growing concerns about significant fiscal spending in key global economies.