Silver Price Soars Toward $36.50 as Israel-Iran Conflict Sparks Safe-Haven Demand

Silver Price Soars Toward $36.50 as Israel-Iran Conflict Sparks Safe-Haven Demand

The Silver price (XAG/USD) continued its sharp rise on Tuesday, trading near $36.50 in early European hours, as heightened geopolitical tensions in the Middle East drove investors to seek refuge in safe-haven assets. The ongoing aerial conflict between Israel and Iran has led to a risk-off market environment, boosting demand for Silver and Gold alike.

Safe-Haven Flow Intensifies Amid Middle East Escalation

The aerial bombardment campaign led by Iranian forces against Israel has seen no signs of de-escalation. Iran, reportedly appealing to Middle Eastern allies, has urged them to pressure US President Donald Trump into forcing a ceasefire from Israeli Prime Minister Netanyahu. Despite diplomatic overtures, the conflict remains unresolved, further fueling risk aversion.

Trump Signals Diplomatic Channel with Iran

Amid growing international pressure, President Trump has extended a diplomatic olive branch. During the G7 summit, he directed Vice President JD Vance and the US Middle East envoy to deliver an informal meeting proposal to Iran. The gesture is seen as an attempt to ease tensions, although its immediate impact on markets remains limited.

Markets Await Fed Rate Decision

Beyond the geopolitical backdrop, investors are closely monitoring the Federal Reserve, which is expected to hold interest rates steady at its meeting on Wednesday. With inflation data softening and economic uncertainty mounting, the market anticipates a dovish tilt in forward guidance, a potentially supportive factor for non-yielding metals like Silver.

Technical Snapshot: XAG/USD Key Levels

• Resistance: $36.50, $36.80 (YTD high)
• Support: $35.80, $35.00

Silver remains technically bullish, but caution prevails ahead of critical central bank risk.

Conclusion: War Risk and Rate Uncertainty Keep Silver Bid

Silver continues to benefit from surging safe-haven demand amid geopolitical shocks and a dovish Fed outlook. The combination of war headlines and macroeconomic ambiguity supports a positive bias for XAG/USD, at least in the short term.

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