Silver price (XAG/USD) is trading in positive territory near $76.55 during Asian trading hours on Tuesday. The white metal continues its upward trend thanks to safe haven flows following the US arrest of Venezuelan President Nicolas Maduro.
US President Donald Trump’s ouster of Maduro has added a new element of geopolitical risk to markets. Trump has stated that Washington may launch a second military attack if Venezuela’s interim president, Delcy Rodriguez, does not respond to their demands, according to The Guardian. Maduro on Monday pleaded not guilty to charges brought against him by the United States in a terrorism and drug case, at the start of an unusual legal battle with major geopolitical ramifications.
“The situation around Venezuela has clearly reactivated safe haven demand,” said Alexander Zumpfy, precious metals trader at German Heraeus Metals.
Expectations of a cut in US interest rates later this year could also push the price of silver higher. Financial markets are currently pricing in quarter-point cuts from the US Federal Reserve in 2026. Lower interest rates could reduce the opportunity cost of holding silver, supporting the non-yielding precious metal.
Traders will be watching US December jobs data on Friday, as it could influence Federal Reserve policy. The US Nonfarm Payrolls report is expected to rise by 55,000 in December, while the unemployment rate is expected to fall to 4.5% in December from 4.6% in November. However, if reports show a stronger than expected result, this could strengthen the US dollar and limit the upside of US dollar-denominated commodity prices in the near term.
Frequently asked questions about West Texas Intermediate crude oil
West Texas Intermediate oil is a type of crude oil that is sold in international markets. WTI stands for WTI, and is one of three main types including Brent and Dubai crude. WTI is also referred to as “light” and “sweet” due to its relatively low gravity and sulfur content, respectively. It is considered a high quality oil and easy to refine. It is sourced from the United States and distributed through the Cushing Hub, considered the “pipeline crossroads of the world.” It is a benchmark for the oil market and the price of WTI is frequently quoted in the media.
Like all assets, supply and demand are the main drivers of the price of WTI. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and affect prices. Decisions by OPEC, a group of major oil-producing countries, are another major driver of the price. The value of the US dollar affects the price of WTI, as oil is mostly traded in US dollars, so a weak US dollar can make oil more affordable and vice versa.
Weekly oil inventory reports from the American Petroleum Institute (API) and the Energy Information Agency (EIA) influence the price of WTI. Changes in inventories reflect fluctuations in supply and demand. If data shows a decline in inventories, this could indicate increased demand, leading to higher oil prices. High inventories can reflect increased supply, causing prices to fall. The API report is published every Tuesday and the EIA report the next day. Their results are usually similar, falling within 1% of each other 75% of the time. EIA data is more reliable, because it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 oil-producing countries that collectively decides production quotas for member countries at meetings held twice a year. Their decisions often affect WTI prices. When OPEC decides to cut its quotas, it can tighten supply, causing oil prices to rise. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten additional non-OPEC members, most notably Russia.
