Spot Silver gained for a third straight trading day on Friday and was on course for a weekly advance, as geopolitical tensions between the US and Iran persisted, underpinning safe-haven assets.
Yesterday US President Donald Trump warned Iran that it must secure a deal over its nuclear program or “really bad things” will happen. In response, Iran signaled potential retaliation against US bases if assaulted.
Focus now sets on the US PCE inflation report, which may provide more clues on the Federal Reserve’s monetary policy trajectory.
The minutes from the Federal Reserve’s January meeting showed that FOMC officials were divided over the future trajectory of interest rates. Several policy makers signaled that further rate cuts would likely be appropriate in case inflation continued to subside in line with their projections.
Others said that it might be prudent to keep the policy rate on hold for some time. Some FOMC members even argued that rate hikes could become necessary in case inflation remained elevated.
Investors are currently expecting the first rate cut by the Fed for this year to occur in June.
Spot Silver was last up 2.87% on the day to trade at $80.79 per troy ounce.
The white metal has risen 4.45% so far this week.
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