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Silver price (XAG/USD) attracts some buyers to around $72.90 during the Asian trading hours on Friday. The white metal rose more than 140% in 2025, marking its sharpest jump since 1979. The rally in Silver is underpinned by the prospect of further US Federal Reserve interest rate cuts in 2026 and safe-haven demand amid geopolitical uncertainty. 

Expectations of more US interest rate cuts weigh on the US Dollar (USD) and provide some support to the USD-denominated commodity price. Financial markets are currently pricing in two quarter-point Fed rate cuts this year. Lower interest rates could reduce the opportunity cost of holding Silver, supporting the non-yielding precious metal.

Additionally, the price of silver is also supported by purchases by central banks and investors buying so-called "safe haven" assets due to concerns about global tensions and economic uncertainty.

"Gold and silver prices are experiencing a notable rise due to the interplay of several economic, investment, and geopolitical factors," said Rania Gule from trading platform XS.com.

However, the potential upside for the white metal might be limited in the near term due to some profit-taking and portfolio rebalancing. The Chicago Mercantile Exchange (CME) Group, one of the world’s largest trading floors for commodities, stated that margins for gold, silver, platinum and palladium would increase again. The notice means investors will need to put up more cash on their bets to insure against the prospect of a default when they take delivery of the contract.

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