• Silver price climbs to near $28.80 on multiple tailwinds.
• Widening Middle East conflicts have improved the Silver price’s safe-haven appeal.
• Investors see the Fed delivering hawkish guidance on interest rates.

Silver price (XAG/USD) jumps to near a weekly high around $28.80 in Wednesday’s North American session. The precious metal strengthens on growing fears of widening Middle East conflicts and firm speculation that the Federal Reserve (Fed) will deliver dovish guidance on interest rates after leaving them unchanged in the range of 5.25%-5.50%.

Israeli air strike on Tehran in which Hamas leader Ismail Haniyeh was killed has prompted fears of an all-out war between Israel and Iran. Historically, escalating geopolitical tensions improve the safe-haven appeal of precious metals.

Meanwhile, investors await the Fed’s monetary policy, which will be announced at 18:00 GMT. Market experts see the Fed endorsing rate cuts in September as inflation has returned on the path that leads to the bank’s target of 2%. Also, increasing cracks in the United States (US) labor market strength would be a tailwind for rate cuts.