Silver prices (XAG/USD) rose to approximately $32.60 per troy ounce during Thursday’s Asian trading session, marking a third consecutive day of gains. The precious metal is drawing increased investor interest amid mounting safe-haven demand fueled by growing fiscal concerns in the United States.
Moody’s recent downgrade of the US credit rating from Aaa to Aa1—following Fitch’s 2023 downgrade and Standard & Poor’s move in 2011—has intensified worries over America’s fiscal outlook. Moody’s forecasts US federal debt soaring to about 134% of GDP by 2035, up from 98% in 2023, with the budget deficit expected to widen to nearly 9% of GDP. The agency cites rising debt-servicing costs, expanding entitlement programs, and declining tax revenues as key drivers of the deteriorating outlook.
Geopolitical instability in the Middle East further dampens risk appetite, pushing investors toward safe-haven assets like silver. Israeli Prime Minister Benjamin Netanyahu declared plans to pursue a full military campaign to seize control of Gaza if hostage negotiations fail. Meanwhile, Reuters reported that the Israeli military allowed 100 aid trucks into Gaza on Wednesday amid UN warnings that distribution challenges have left many civilians without assistance.
On another front, Ukraine is preparing to urge the European Union to seize Russian assets and impose sanctions on certain buyers of Russian oil. Despite President Trump easing off on sanction tightening, Ukraine plans to submit a confidential white paper next week, urging the EU’s 27 members to adopt a more independent stance on sanctions.
