The post XAG/USD rebounds as war fuels safe-haven demand appeared on BitcoinEthereumNews.com.

Silver (XAG/USD) advances on Wednesday, trading around $83.80 at the time of writing, up 1.60% on the day. The precious metal is rebounding after a steep correction seen over the previous two days, during which prices fell sharply amid broad liquidation across precious metals. Demand for safe-haven assets is strengthening as geopolitical tensions intensify in the Middle East. The war involving the United States (US), Israel and Iran has entered a new phase of military escalation, marked by airstrikes and missile attacks on several strategic sites. Tehran has responded with missile and drone strikes targeting US bases and allied facilities in the region, increasing uncertainty over the conflict’s trajectory. In this context, markets are closely monitoring potential disruptions to energy shipments through the Strait of Hormuz, a critical maritime route for global Oil exports. The prospect of sustained higher energy prices is reviving global inflation concerns and reinforcing the appeal of traditional safe-haven assets such as Silver. US President Donald Trump stated that the US Navy could escort commercial vessels in the Gulf to ensure the free flow of energy, adding that Washington could also provide political risk insurance for tankers operating in the region. At the same time, investors are reassessing the monetary policy outlook of the Federal Reserve (Fed). Markets are currently pricing in around 50 basis points of interest rate cuts by the end of the year, according to estimates based on the CME FedWatch tool. Such an environment could support precious metals, which tend to benefit from lower interest rates. However, the strengthening US Dollar (USD) may limit further gains in USD-denominated Silver. Rising energy prices are fueling inflation expectations, prompting some investors to reconsider the timing of potential monetary easing by the Fed. On the macroeconomic front, the latest US data still point to a…

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Filed under: News - @ March 4, 2026 5:19 pm