Silver (XAG/USD) halted its four-day losing streak on Tuesday, trading around $33.10 per troy ounce during Asian market hours. The rebound was fueled by increased safe-haven demand as geopolitical tensions continued to escalate.
The United Nations (UN) announced a reduction of its international staff in Gaza by one-third on Monday following Israeli airstrikes that resulted in hundreds of civilian deaths, including UN personnel. After a two-month ceasefire, Israel resumed its full-scale military operations against Hamas last Tuesday, intensifying the ongoing conflict. Palestinian health officials reported nearly 700 fatalities since the resumption of hostilities, pushing the total casualties in Gaza above 50,000, with nearly a third of the victims being children, according to Reuters.
In addition, Russian state media RIA Novosti reported that a joint statement from the US and Russia was expected on Tuesday, following discussions in Riyadh that concluded on Monday. The talks reportedly focused on efforts to negotiate a ceasefire deal for the Black Sea region.
However, silver faced some resistance due to a strengthening US Dollar (USD), bolstered by strong US economic data and cautious remarks from Federal Reserve (Fed) officials. The S&P Global Services PMI surged to 54.3 in March, marking a three-month high, up from 51.0 in February and exceeding market expectations. The Composite PMI also rose to 53.5, its strongest growth since December 2024, signaling a rebound in the services sector after a slump in February.
Atlanta Fed President Raphael Bostic cautioned that economic uncertainty remains, noting that progress on inflation could be slower than expected. Bostic revised his 2025 rate cut projections downward, citing ongoing inflationary pressures and risks tied to trade tensions.
