Silver Price Forecast: XAG/USD trades around $43.50 near fresh 14-year highs
LONDON (September 22) Silver price (XAG/USD) extends its gains to mark fresh 14-year highs, trading around $43.50 per troy ounce during the European hours on Monday. The price of the precious metals, including Silver, gained ground amid rising safe-haven demand, driven by the geopolitical tensions in Europe and the Middle East.
Russia launched airstrikes targeting western Ukraine near the border with Poland, prompting Poland’s NATO-aligned armed forces to deploy aircraft on Saturday to ensure the safety of Polish airspace. Three Russian military jets also violated NATO Estonia's airspace on Friday, while Germany's air force reported that a Russian military plane entered neutral airspace on Sunday over the Baltic Sea.
On Sunday, Britain, Canada, Australia, and Portugal recognized the Palestinian state in a move aimed at advancing a two-state solution. They join over 140 nations supporting Palestinians’ bid for an independent homeland from the occupied territories. The decision could spark a furious response from Israel, as these Western countries had long been considered close allies, per Reuters.
The non-interest-bearing Silver also draws support after the Federal Reserve (Fed) delivered a 25-basis-point rate cut last week and indicated a further 50 basis points of easing before year-end, slightly above its June projections. The focus this week is on the fresh Fed commentary and the latest Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, which is expected to signal subdued price pressures.
FXStreet
