REDATOR Ben Graham Posted February 4 REDATOR Report Share Posted February 4 Silver is trying to continue its rise for the second consecutive day, gaining support from unfavorable conditions associated with escalating geopolitical risks and ambiguous macroeconomic data from the US, which once again ignites interest in safe-haven assets.Demand for silver is increasing amid heightened US-Iranian tensions following incidents in the Arabian Sea. Such geopolitical turmoil is prompting investors to pare back riskier positions and redirect capital into precious metals, where silver has traditionally been a favorite during global instability.Tuesday's rebound partially offsets the recent correction, during which the asset sharply fell from its historical high. This decline was triggered by the appointment of Kevin Warsh as head of the Fed, which was initially interpreted as a signal of a strengthening dollar, given the former central bank head's reputation for a more restrictive policy.From a macroeconomic perspective, fresh US data released on Wednesday indirectly benefited silver. The ADP data revealed only 22,000 new jobs in the private sector for January—substantially below consensus forecasts—confirming the slowdown in the labor market while maintaining moderate wage growth. Additionally, the ISM PMI for the services sector stagnated at 53.8, slightly exceeding expectations, although its "Employment" and "New Orders" components decreased, indicating some weakening of the economic driver.As a result, investors anticipate the Fed will keep rates unchanged at its upcoming meetings, with the option to ease by the end of the year if indicators continue to deteriorate. Such prospects are weighing on the dollar and boosting silver's appeal, which typically benefits from lower real interest rates and heightened macroeconomic and geopolitical uncertainty.From a technical standpoint, oscillators on the daily chart are mixed, with the relative strength index in negative territory, suggesting that bulls lack the strength to drive growth. Nevertheless, prices have held support at 75.500.The material has been provided by InstaForex Company - www.instaforex.com Perfect! Thanks! Love it! Haha Confused :/ Oush! Wow! Liked! × 💬 Did you like this content? Your feedback is very important! Liked! Perfect! Thanks! Love it! Haha Confused :/ Oush! Wow! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.