Silver extends bullish run on Fed outlook, geopolitical risks

Spot Silver extended its streak of gains on Tuesday, as dovish remarks by a key Federal Reserve official bolstered rate cut expectations.

Yesterday Minneapolis Fed President Neel Kashkari said that inflation was slowly cooling, but there was a risk the unemployment rate could “pop” higher. This would add to prospects of an interest rate cut.

Investor focus now sets on the US data string, including ADP employment figures, job openings as well as Friday’s Non-Farm Payrolls report for December, which may provide more clues on the health of the economy and the Fed’s monetary policy trajectory.

FOMC policy makers had signaled just one 25 bps rate cut for 2026, while investors continue to expect two or three rate cuts of 25 basis points each.

Lower interest rates tend to reduce the opportunity cost of holding Silver, which pays no interest.

On the geopolitical front, the US-led capture of Venezuelan President Nicolas Maduro has triggered a rush into safe-haven assets, supporting precious metals.

Officials said Maduro was transferred to the US to face long-standing narcotics-related charges and entered a not guilty plea in a New York court on Monday.

According to media reports, US President Trump threatened a second military action in case Venezuela’s interim president, Delcy Rodriguez, did not comply with Washington demands.

Spot Silver was last up 1.72% on the day to trade at $77.93 per troy ounce.

Last year, Silver demonstrated a stellar performance, driven by its designation as a critical US mineral and amid supply tightness. Silver scaled a record high of $83.62/oz. on December 29th. The white metal also registered its best annual performance on record in 2025, gaining 147%.