Silver Price Outlook: XAG/USD maintains strength above $83.00 amid rising demand for safe-haven assets

Silver Prices Climb Amid Heightened Global Uncertainty

Silver (XAG/USD) continued its upward momentum for a second straight session, trading near $83.10 per troy ounce during Monday’s Asian market hours. The appeal of precious metals like silver has grown as investors seek safe-haven assets in response to rising geopolitical risks.

Market participants are monitoring widespread demonstrations in Iran, which have entered their third week and reportedly resulted in significant casualties. US President Donald Trump has cautioned Iran against suppressing protestors with force, hinting at potential US intervention if the situation escalates. Meanwhile, Iranian authorities have warned against any involvement from the US or Israel.

According to Bloomberg, European nations, particularly the UK and Germany, are weighing the possibility of boosting their military footprint in Greenland to reinforce Arctic security. Germany is considering proposing a joint NATO operation, while UK Prime Minister Keir Starmer has called on allied nations to intensify their focus on the High North. These discussions follow renewed statements from US President Donald Trump advocating for American control over Greenland.

Uncertainty surrounding the Federal Reserve has also contributed to increased demand for silver as a safe asset. The New York Times reported that federal prosecutors have launched a criminal probe into Fed Chair Jerome Powell, focusing on the renovation of the central bank’s Washington headquarters and whether Powell misled Congress about the project’s details.

Investors are also evaluating the prospect of additional interest rate reductions by the Fed after Friday’s employment data revealed weaker-than-expected job growth. US Nonfarm Payrolls (NFP) increased by 50,000 in December, below the revised November figure of 56,000 and short of the anticipated 60,000.

Despite ongoing speculation about two potential Fed rate cuts this year, most analysts expect the central bank to maintain its current policy stance at the upcoming meeting. The CME Group’s FedWatch tool indicates that futures markets are pricing in a roughly 95% chance that the Fed will leave interest rates unchanged at its January 27–28 gathering.