Money (XAG/USD) soars following safe-haven asset demand: The market awaits employment data to determine the direction

The money market is moving upward at $76.55

In Asian trading on Tuesday, (XAG/USD) continues its upward momentum at $76.55. This precious metal is supported by capital inflows into safe-haven assets following geopolitical tensions in the region.

Venezuelan situation boosts demand for safe-haven assets

The United States has detained Venezuelan President Nicolás Maduro, adding further geopolitical risk to the global markets. President Trump mentioned the possibility of a second military intervention if Venezuela’s interim government led by Juan Guaidó does not comply with American demands. Currently, Maduro has denied allegations of narco-terrorism against him.

According to Alexander Sumpf, a precious metals analyst from Heraeus Metals Germany, “The situation in Venezuela has clearly triggered demand for safe-haven assets.” Money acts as a key risk-avoidance asset during times of market uncertainty.

Lower interest rates may accelerate silver prices

Market expectations of a U.S. interest rate cut remain a supporting factor for precious metals prices. Currently, the financial markets are pricing in two rate cuts of approximately 0.25% each by the Federal Reserve (Fed) throughout 2026. When interest rates decrease, the opportunity cost of holding precious metals also declines, making gold and silver more attractive as non-yielding assets.

U.S. employment data is this week’s focus

The main focus for traders is the U.S. December employment report, which will be released on Friday. This data could influence Fed policy decisions. Current forecasts suggest:

• Non-farm payrolls (NFP) may increase by around 55,000 jobs
• The unemployment rate is expected to decrease to 4.5% from 4.6% in November

If employment data shows stronger-than-expected growth, the U.S. dollar (USD) could strengthen, potentially limiting short-term gains in XAG/USD, as commodities priced in dollars often move inversely to the dollar’s strength.