Silver (XAGUSD) is surging on Friday as geopolitical tensions in the Middle East have propped up demand for the safe-haven asset.
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Forget margin or options. Here's how the pros trade QQQThe U.S. has been building up its military presence in the Middle East for the past few weeks as it prepares for a potential strike on Iran. The two sides engaged in indirect talks earlier this week, although Iran remained firm in its stance of maintaining its stockpile of enriched uranium. On Friday, President Trump said he would prefer not to attack Iran, although the option is still on the table.
Silver Jumps on Geopolitical Conflicts, Rising PPI Inflation
Another conflict is emerging, as Pakistan has declared “open war” on Afghanistan after a string of overnight cross-border attacks.
Elsewhere, silver is getting a boost from a hot inflation reading. The Bureau of Labor Statistics announced this morning that the Producer Price Index (PPI) rose 0.5% in January, the highest reading since October and topping expectations of 0.3%. Precious metals like silver tend to benefit during periods of rising inflation because they are seen as a hedge against the declining purchasing power of money.