• Silver posts a strong rally and hits a new all-time high above the $90 mark.
• Geopolitical tensions in the Middle East strengthen demand for safe-haven assets.
• Concerns over the independence of US monetary policy weigh on the US Dollar and support precious metals.

Silver (XAG/USD) extends its bullish momentum on Wednesday and trades around $90.50 at the time of writing, up 4.30% on the day. The white metal records a fourth consecutive day of gains and reaches a new all-time high, supported by a macroeconomic and geopolitical backdrop that remains highly favorable for safe-haven assets.

Demand for Silver continues to be underpinned by rising geopolitical tensions, particularly in Iran, where widespread public protests linked to high inflation, the sharp depreciation of the Iranian Rial (IRR) and allegations of government corruption are challenging the authorities. The violent crackdown on demonstrators, which has reportedly resulted in hundreds of deaths according to human rights groups, has intensified risk aversion across global markets. Statements from US President Donald Trump, warning that military action could be considered if the repression continues, further add to the sense of uncertainty.

Against this backdrop, Silver fully benefits from its safe-haven status. Investors are seeking protection not only from geopolitical risks but also from growing institutional concerns in the United States (US). Worries surrounding the independence of the Federal Reserve (Fed) have intensified following the launch of criminal charges against its Chair, Jerome Powell, related to the management of funds allocated to the renovation of the Fed’s headquarters in Washington. Jerome Powell has denounced the move as politically motivated, arguing that it represents a pretext to influence monetary policy decisions.

These developments initially weighed heavily on the US Dollar (USD), as markets feared that an attack on the autonomy of the US central bank could undermine the country’s financial credibility and, potentially, its sovereign credit rating. Although the Greenback has shown signs of stabilization after strong public support for Jerome Powell from several major global central banks, including the European Central Bank (ECB) and the Bank of England (BoE), the broader backdrop remains supportive for precious metals.

In addition, expectations of interest rate cuts by the Federal Reserve continue to play a key role. In an environment where real yields are expected to decline and the US Dollar remains structurally under pressure, Silver retains a strong appeal for investors, especially as persistent tightness in the physical market and robust demand continue to underpin its outlook.