Silver price (XAG/USD) rises to near $28.00 per troy ounce during the European session on Monday. The rising geopolitical tensions in the Middle East contribute support for the safe-haven metals like Silver.
Israel Defense Forces (IDF) intercepted around 30 "projectiles" crossing from Lebanon into northern Israel early Monday. The IDF stated that some projectiles landed in open areas, and no injuries were reported, as reported by ABC News.
Additionally, Reuters cited Gaza Civil Emergency Service on Saturday, the Israeli incursion into Gaza escalated with an airstrike targeting a school compound, leading to at least 90 fatalities. However, Israel has contested this casualty figure, labeling it as exaggerated. Meanwhile, Hamas has expressed uncertainty about engaging in new ceasefire negotiations on Sunday.
Last week's upbeat US economic data led traders to reduce their expectations for a 50-basis point interest rate cut by the US Federal Reserve in September. The CME FedWatch Tool indicates a 46.5% chance of a two-quarter-basis point rate cut by the Fed at the September meeting, a significant decrease from the 74.0% probability reported a week ago. The expectations of prolonging higher interest rates may put pressure on non-yielding assets like Silver.
Source : Fxstreet
