Silver jumped roughly 4% to trade above $80.50 per ounce, extending its rebound as rising geopolitical tensions and shifting expectations for the US economy reignited both safe-haven and industrial demand. Heightened frictions between Washington and Tehran—following President Donald Trump’s nuclear deadline and Iran’s warning of retaliation—have rebuilt a risk premium that silver’s characteristic volatility has magnified.
At the same time, a softer Q4 GDP reading of 1.4% contrasted with a firmer 3.0% core PCE inflation rate, deepening uncertainty over the Federal Reserve’s policy trajectory. FOMC minutes revealed internal divisions, while jobless claims held steady at a low 206,000, underscoring the mixed macro picture. This blend of moderating growth and stubborn inflation has muddied the outlook for real yields.
Liquidity in Asia remained thin over the Lunar New Year holiday, following a recent blow-off top and speculative unwinding in Chinese futures markets. However, renewed participation as regional markets reopen is helping to fuel fresh momentum. Silver now appears to be consolidating, as investors weigh its safe-haven characteristics against its essential industrial applications.
