• Silver price maintains its position near the record high of $86.26, recorded on Monday.
• Safe-haven demand increases as President Trump announced to impose 25% tariffs on countries trading with Iran.
• US Consumer Price Index data for December is due later in the North American session.

Silver price (XAG/USD) remains steady, slightly below record highs, trading around $85.20 per troy ounce during the European hours on Tuesday. Precious metals, including Silver, are drawing investors as safe-haven demand rises amid escalating geopolitical tensions and concerns over the Federal Reserve’s independence. Traders await the US Consumer Price Index (CPI) data for December due later in the North American session.

President Trump said on Monday that he would impose 25% tariffs on goods from any country doing business with Iran, stepping up pressure on Tehran amid widespread domestic protests. He added that the measure would take effect immediately, without providing further details. Trump warned on Sunday that action may be required before any meeting, even as he said Iran’s leadership had reached out seeking “to negotiate” after his military threats.

The grey metal price rises as traders adopt caution after US federal prosecutors threatened to indict Fed Chair Jerome Powell over his comments to Congress regarding a building renovation project, raising questions about the central bank’s independence. The Trump administration has been pressuring the Fed to cut interest rates, with Powell calling the threat a “pretext” to influence policy.

The non-interest-bearing Silver gains ground as markets are pricing in two Federal Reserve rate cuts this year, starting in June, though an upside inflation surprise could curb easing prospects. The CME Group's FedWatch tool indicates that the Fed funds futures price indicates a 95% probability that the US central bank will keep rates unchanged at its January 27–28 meeting.