HG MARKETS:

Silver prices (XAG/USD) continued to climb for the third consecutive day, reaching around $30.15 per troy ounce during Asian trading hours on Friday. The ongoing rally is primarily driven by strong safe-haven demand amid ongoing geopolitical tensions, particularly in the Middle East and the prolonged Russia-Ukraine conflict. These factors have intensified investor interest in precious metals like silver as a protective asset.

Reports from Axios reveal that U.S. President Joe Biden explored contingency plans to target Iran’s nuclear facilities if Tehran made significant advances toward developing a nuclear weapon. This comes as concerns over Iran’s nuclear ambitions grow, especially during the transition between U.S. administrations. Meanwhile, the situation in Ukraine remains tense, with Russia carrying out a drone strike on Kyiv that resulted in casualties and damage. In Gaza, Israeli airstrikes continued, causing further casualties and exacerbating the humanitarian crisis.

Additionally, the People’s Bank of China (PBoC) is expected to cut interest rates at an appropriate time this year, a move traders are watching closely as they anticipate a recovery in China’s economy. President Xi Jinping reiterated his focus on boosting economic growth through proactive policies in 2025, signaling potential support for silver demand, especially in industrial sectors.

China’s December manufacturing data showed only minimal growth, but the services and construction sectors have begun to recover. This suggests that China’s policy stimulus is beginning to take effect, despite the challenges posed by potential trade risks, including tariffs proposed by U.S. President-elect Donald Trump. The combination of geopolitical uncertainty and economic policy shifts is influencing silver’s appeal as a safe-haven asset.