Silver prices surged more than 4% to surpass $83 per ounce on Monday, achieving new record highs amid increasing demand for safe-haven metals triggered by geopolitical tensions and speculations regarding U.S. interest rate cuts. As the metal rallied, investors turned their attention to ongoing nationwide protests in Iran, which have entered their third week and reportedly resulted in hundreds of fatalities.
U.S. President Donald Trump issued a stern warning to the Iranian leadership, emphasizing that any violent suppression of demonstrators would provoke a response from Washington. This has heightened tensions, as Iranian officials have cautioned against potential interventions from the U.S. or Israel. The developments have intensified market focus on the potential implications for stability in the region.
In addition, market participants are weighing the likelihood of further interest rate cuts by the U.S. Federal Reserve, especially after the latest monthly jobs report indicated that job growth fell short of expectations. Traders are betting on two rate cuts by the end of the year, although the Federal Reserve is widely anticipated to maintain the current policy during its meeting later this month.
The confluence of these factors has fueled silver’s rise, as investors seek refuge in precious metals amidst uncertainty in both geopolitical affairs and economic indicators.
