Money exceeds a symbolic threshold, driven by a refugee request
This Friday, the price of silver (XAG/USD) settles around $30.20 per ouncecontinuing an increase that began despite slight losses during the previous session. This level reflects a renewed interest in assets deemed safe, in an uncertain economic and political climate.
Inflation and American politics at the heart of concerns
The rise in silver prices takes place in a context ofhigh inflation and concerns around the possible tariff policies of the Trump administration. These uncertainties, combined with the global economic outlook, continue to strengthen the appeal of this asset, often seen as a buffer against turbulence.
Also read: Why could silver explode to unprecedented heights in 2025?
However, US bond yields, currently at high levels – with rates at 10 years at 4.68% and to 30 years at 4.92% – could limit gains. These figures, linked to the minutes of the December FOMC meeting, demonstrate a cautious posture by the Federal Reserve in the face of inflationary pressures.
Geopolitics: a key role in market fluctuations
Geopolitical tensions continue to fuel market volatility. The recent conflicts in Ukraine, marked by human losses and bombings reported by both sides, are exacerbating investors’ concerns. This context pushes many economic players to favor safe haven assets such as money, in response to growing global instability.
Monetary policy under observation
Market expectations are now focused on US employment data, notably the Nonfarm Payrolls (NFP)which could guide future decisions by the Fed. Current forecasts suggest a slowing in the pace of interest rate reductions, a potentially supportive factor for non-yielding assets, including silver.
The impact of industrial demand on prices
Alongside its role as a safe haven, silver plays a central role in many industries, such as electronics and solar energy. Its unrivaled electrical conductivity makes it a key component in modern technologies. The dynamics of major economies, particularly in Chineto UNITED STATES and in Indealso influence fluctuations in demand, and therefore prices.
Silver versus gold: an inseparable tandem
Historically, silver prices move in parallel with those of gold, with the two metals sharing the status of safe haven assets. The gold/silver ratio, a key indicator for assessing their relative valuation, is scrutinized by investors to detect market opportunities. A high ratio could signal a undervaluation of moneyfurther strengthening investor interest.
Frequently asked questions about money
Why does money attract investors?
Silver offers portfolio diversification thanks to its role as safe haven and its industrial applications. Available in physical form or via ETFs, it allows you to position yourself on various economic trends.
What are the factors that influence its price?
Silver prices are sensitive to interest rates, the strength of American dollar and industrial needs. Economic or political crises also reinforce its perceived value.
How does industrial demand affect prices?
Used massively in technologies, silver reacts strongly to economic growth great nations. An increase in demand in sectors such as renewable energies can therefore increase prices.
