Silver rose for a second day and traded near $90.00 per troy ounce during Asian hours on Thursday. Demand for safe-haven assets increased due to uncertainty about White House economic policy.<\/p>\n
In Tuesday\u2019s State of the Union address, Donald Trump gave no sign of easing tariffs. Section 122 tariffs were raised to 10%, after earlier threats of 15%, following a Supreme Court ruling that struck down country-specific tariffs under IEEPA 10 months ago.<\/p>\n
Geopolitical risks also supported prices. Trump threatened military action against Iran if talks fail, while Iran said US bases in the Middle East would be targets, putting tens of thousands of US service members at risk, as US-Iran nuclear talks were set for Thursday in Geneva.<\/p>\n
Silver\u2019s rise may be limited as expectations of near-term Federal Reserve rate cuts weaken. Austan Goolsbee said inflation progress stalled and that 3% inflation is above the 2% target, while Susan Collins said keeping rates steady for some time appears appropriate.<\/p>\n
IMF Managing Director Kristalina Georgieva said tariffs have partly influenced US goods inflation. She said a federal funds rate of 3.25%\u20133.5% would fit a return to full employment, and that public debt reduction needs decisive fiscal action.<\/p>\n
With silver touching levels near $90.00, we are in a period of heightened uncertainty driven by US policy and Middle East tensions. This environment suggests significant price swings are likely in the coming weeks. Derivative traders should therefore prepare for this volatility rather than betting on a single direction.<\/p>\n
The upcoming Geneva talks with Iran are a critical catalyst for a potential move higher. A breakdown in negotiations could easily push silver toward the $100 mark as safe-haven demand intensifies. We can position for this by considering call options to capture that upside while limiting risk if a diplomatic solution is found.<\/p>\n
However, we must not ignore the Federal Reserve’s firm stance against inflation, which remains near 3%. We saw how sticky inflation proved back in 2024, often hovering above 3.1%, which delayed that era’s rate cuts. Any sign of continued economic strength could reinforce the ‘higher for longer’ rate policy, making put options a viable hedge against a sharp price correction from these peaks.<\/p>\n
Given these opposing forces, a strategy that profits from a large move in either direction, like a long straddle, could be prudent. This position would benefit from a surge in price due to conflict or a sharp drop if the Fed’s hawkishness dominates market sentiment. The current price level is a significant departure from the $25-$30 range we saw through much of 2024 and 2025, suggesting a return to stability is unlikely in the short term.<\/p>\n
It’s also worth noting how silver is outperforming its peers in this environment. The gold-to-silver ratio has compressed significantly from the 85:1 levels seen back in 2024, suggesting silver is currently the favored safe-haven asset. Traders should watch this ratio closely, as a reversal could be an early signal that momentum is shifting away from silver.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Silver held near $90 as safe-haven demand rose amid tariff uncertainty, geopolitical tensions, and fading Fed cut hopes.<\/p>\n","protected":false},"author":62,"featured_media":16975,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-43666","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/43666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=43666"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/43666\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16975"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=43666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=43666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=43666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}