FX.co ★ Silver Recovers Further

Silver rose above $78.50 per ounce, extending its gains as investors reassessed the US policy outlook against a backdrop of resilient economic data and mounting geopolitical tensions. Minutes from the Federal Reserve’s January meeting showed that most officials view inflation risks as tilted to the upside, with several favoring an extended period of restrictive policy and some even indicating that further tightening could be appropriate if price pressures do not ease. This prompted markets to scale back expectations for multiple rate cuts this year, while still pricing in modest easing before year-end. Stronger labor market indicators, including a decline in initial jobless claims to 206,000, reinforced the perception that underlying demand remains solid. At the same time, renewed strains in the Middle East, together with stalled diplomatic efforts between Russia and Ukraine, have bolstered safe-haven demand for precious metals.