Silver price (XAG/USD) rises to near $32.60 per troy ounce during the Asian trading hours on Thursday, gaining ground for the third successive session. Precious metals, including Silver, attract buyers amid rising safe-haven demand over growing fiscal concerns in the United States (US).

Moody's downgraded the US credit rating from Aaa to Aa1, following similar downgrades by Fitch Ratings in 2023 and Standard & Poor's in 2011. Moody's also predicted that US federal debt is expected to climb to around 134% of GDP by 2035, up from 98% in 2023, with the budget deficit expected to widen to nearly 9% of GDP. This deterioration is attributed to rising debt-servicing costs, expanding entitlement programs, and falling tax revenues.

Additionally, the ongoing geopolitical unrest in the Middle East dampens the risk sentiment and drives investors toward safe-haven assets like Silver. However, Prime Minister Benjamin Netanyahu said that Israel would charge ahead with a military campaign to gain total control of Gaza, in the event of, failure of the return of hostages. Reuters cited the Israeli military as saying to let 100 aid trucks into the Gaza Strip on Wednesday, as UN officials reported that distribution issues had meant that no aid had so far reached people in need.

Next week, Ukraine is set to ask the European Union (EU) to seize Russian assets and put sanctions on some buyers of Russian Oil. As President Trump backed off from tightening sanctions, Ukraine will present an unreported white paper to the EU, asking 27-member countries to take an independent position on sanctions

Source: Fxstreet