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Silver
Source: Newsmaker.id
The price of silver strengthened to above US$57 per troy ounce during Friday’s trading session (October 16), extending gains from the previous session. This rise occurred amid a global sell-off in equities, which prompted investors to shift capital into safe-haven assets such as government bonds and precious metals. A decline in bond yields further enhanced the appeal of silver—an asset that does not generate interest or dividends.
Safe-haven sentiment has intensified due to mounting geopolitical risks in the Middle East. The conflict between Saudi Arabia and the Iranian-backed Houthi group in Yemen continues to escalate. Furthermore, a Singapore-flagged container ship reportedly sank in the Strait of Hormuz after being struck by an Iranian projectile, heightening concerns regarding the security of this strategic trade route.
Meanwhile, the market remains focused on the Federal Reserve’s policy trajectory, following US economic data that revealed higher-than-expected inflationary pressures. These conditions sustain expectations for an interest rate hike, although the market currently assigns a roughly 72% probability that the Fed will hold rates steady in October, and a 92% chance of a hike in December.
Newsmaker Analysis: Silver is currently supported by capital inflows into safe-haven assets, falling yields, and growing geopolitical uncertainty. However, the prospect of a Federal Reserve rate hike in December remains a risk for silver, as it could push yields and the US dollar higher. Future movements in the XAG/USD pair will largely depend on the balance between safe-haven demand and interest rate expectations.
Source: Newsmaker.id