Silver price (XAG/USD) continues its upward momentum, rising for the sixth consecutive day to trade near $30.10 per troy ounce, close to three-week highs during Thursday's Asian session. The precious metal, often considered a safe-haven asset, gains support amid uncertainty surrounding inflation and potential tariffs under President-elect Trump's administration, as highlighted by the US Federal Reserve (Fed).
In addition, robust growth in 2024 has boosted industrial demand for Silver, which is on track to surpass 700 million ounces (Moz) for the first time. This surge is driven by its critical role in solar technology, electric vehicles (EVs), 5G networks, and consumer electronics, positioning Silver as a vital material for advancing innovation and supporting the transition to clean energy solutions.

Moreover, heightened geopolitical tensions have added to market volatility, prompting investors to turn to precious metals like Silver for stability. According to Reuters, a Russian-guided bomb attack on Wednesday claimed the lives of at least 13 people and injured 63 others in Ukraine's southeastern city of Zaporizhzhia, further fueling safe-haven demand.

The upside of the non-yielding metal could be limited as long-term US bond yields continue climbing on heavy supply. The 10-year rose to 4.73%, while the 30-year approached 4.96% on Wednesday following the Federal Open Market Committee (FOMC) Minutes from the December meeting.

FOMC Minutes showed that Fed policymakers expressed concern about inflation and the impact that President-elect Donald Trump's policies could have. Fed officials indicated they would be moving more slowly on rate reductions because of the uncertainty. Fed officials penciled the expected cuts in 2025 to two from four in the previous estimate at September's meeting.(Cay) Newsmaker23

Source: Fxstreet