• Silver price appreciates due to escalated tensions in the Middle East on Tuesday.
• Israeli troops have advanced into the northern region of Gaza in an attempt to retake territory from Hamas militants.
• Fed officials indicated maintaining higher rates for longer, which may undermine the non-yielding assets like Silver.

Silver price extends its gains for the second consecutive session, trading around $28.30 per troy ounce during the early European session on Tuesday. The increase in the value of the safe-haven Silver can be attributed to the escalating geopolitical tensions in the Middle East. According to Reuters, Israeli forces have advanced significantly into the northern part of Gaza in an effort to reclaim territory from Hamas fighters.

The Silver price was bolstered after the weekly US Initial Jobless Claims released on Thursday, which surged to a near eight-month high at 231,000. This signaled a weakening labor market and potentially provided the Federal Reserve (Fed) with room to commence its easing cycle sooner rather than later.

However, Fed officials emphasized the importance of maintaining higher rates for longer given the elevated inflation. Fed Vice Chair Philip Jefferson reiterated this stance on Monday, advocating for keeping current interest rates until signs of inflation easing emerge. Higher interest rates typically dampen the attractiveness of non-yielding assets such as Silver.

Later in the day, traders will likely monitor the US Producer Price Index (PPI), a crucial economic indicator. The PPI report could have a significant impact on the US market. Traders might utilize the PPI data to gauge the potential outcome of the Consumer Price Index (CPI). If the PPI data surpasses expectations, it could reinforce the hawkish sentiment surrounding the Fed's commitment to maintaining higher rates for an extended period. This could potentially exert pressure on Silver prices.