Silver extends rally to record high above $71 on safe-haven demand, Fed easing bets

• Silver extends its rally for a third consecutive day and posts a fresh all-time high at $71.09
• Safe-haven demand remains supported by geopolitical tensions and political uncertainty
• Expectations of prolonged Federal Reserve easing limit the risk of a deeper pullback

Silver (XAG/USD) extends its rally for a third straight day, up 2.80% on Tuesday, and trades close to its historical highs. The white metal prints a new record high at $71.09 and currently holds near this level, highlighting the strength of the bullish momentum despite occasionally volatile market conditions.

Silver is primarily supported by an increasingly tense geopolitical backdrop, which continues to underpin demand for safe-haven assets. Persistent uncertainty surrounding several global flashpoints encourages investors to increase exposure to precious metals, at a time when macroeconomic visibility remains limited.

At the same time, expectations of an accommodative monetary policy stance in the United States (US) provide additional structural support. Markets remain confident that the Federal Reserve (Fed) could continue easing policy in the coming years, despite mixed economic signals. This outlook weighs on real yields and reinforces the appeal of Silver, which offers no yield but retains its role as a store of value in a lower-rate environment.

Recent US macroeconomic data paint a nuanced picture. While growth remains solid, several leading indicators point to a gradual slowdown, particularly in investment and Industrial Production. This combination sustains the view that the Fed has room to support the economy, limiting any sustained recovery in the US Dollar (USD) and favoring precious metals.

Beyond macroeconomic factors, the current move also reflects year-end portfolio repositioning. After already delivering exceptional performance, Silver continues to attract both speculative and long-term inflows, as investors prioritize diversification and protection against tail risks.

Although short-term profit-taking cannot be ruled out after such a sharp advance, the broader fundamental bias remains tilted to the upside. As long as geopolitical tensions persist and expectations of prolonged Fed easing remain firmly anchored, Silver continues to benefit from a supportive environment for elevated prices.