Silver (XAG/USD) prices snapped a four-day losing streak, trading around $33.10 per troy ounce during Asian market hours on Tuesday (3/25). The recovery was driven by increased demand for safe-haven assets amid rising geopolitical tensions.
The United Nations (UN) announced on Monday that it would reduce its international staff in Gaza by about a third after Israeli airstrikes killed hundreds of civilians, including UN personnel. After a two-month ceasefire brought relative calm to the 18-month war, Israel resumed a full-scale air and ground campaign against Hamas on Tuesday.
Palestinian health officials have reported nearly 700 deaths since then, with the total toll in Gaza exceeding 50,000, nearly a third of them children, according to Reuters
Meanwhile, Russian state media RIA Novosti reported that a joint statement from the US and Russia is expected on Tuesday, following talks between their delegations in Riyadh that ended on Monday. The discussions reportedly included efforts to negotiate a Black Sea maritime ceasefire deal, among other issues.
However, silver faced headwinds as the US Dollar (USD) strengthened, driven by strong US economic data and cautious remarks from Federal Reserve (Fed) officials. The S&P Global Services PMI jumped to 54.3 in March, a three-month high, up from 51.0 in February and beating market expectations of 50.8. The services sector rebounded sharply after hitting a 15-month low in February, while the Composite PMI rose to 53.5, marking its strongest growth since December 2024.
Atlanta Fed President Raphael Bostic highlighted persistent economic uncertainty, warning that inflation progress may be slower than previously anticipated. Bostic revised down his 2025 rate cut expectations, citing ongoing price pressures and trade-related risks. (Newsmaker23)
Source: FXstreet
