iShares Silver Trust (SLV) surged 5.21% in pre-market trading, mirroring a broader rally in silver-related assets as investors flocked to safe havens amid heightened geopolitical tensions and growing expectations of U.S. Federal Reserve rate cuts.
The rally was fueled by record highs in spot silver prices, which climbed to $84.42 per ounce, as unrest in Iran and threats of U.S. military action spooked markets. Additionally, Fed Chair Jerome Powell's disclosure of a criminal probe by the Trump administration added to economic uncertainties, weakening the dollar and boosting demand for non-yielding assets like silver.
Analysts noted that silver and gold tend to outperform during periods of geopolitical or economic instability, especially when interest rates are expected to decline. "Central bank appetite for precious metals is likely to grow this year as they seek lower-risk alternatives to the dollar," one analyst remarked.
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