Silver Price Forecast: XAG/USD slips to near $66.00 on Fed hike fears, oil surge
Silver price (XAG/USD) depreciates after two days of gains, trading around $66.00 per troy ounce during the Asian hours on Tuesday. The price of non-yielding Silver has taken a hit recently as rising oil prices spark renewed inflation fears and heighten expectations for interest rate hikes.
Silver prices (XAG/USD) experienced a decline after a two-day upward trend, hovering around $66.00 per troy ounce during the Asian trading hours on Tuesday. Recently, the price of non-yielding Silver has been affected by climbing oil prices, which have intensified inflation concerns and increased the likelihood of interest rate hikes.
The geopolitical uncertainty surrounding a potential US-Iran deal has led to a surge in crude oil, subsequently driving up Treasury yields. With the Federal Reserve (Fed) potentially raising rates sooner than expected, despite a cooling labor market, investors are closely monitoring upcoming inflation data for clues on the Fed's next move.
The CME FedWatch Tool indicates that the probability of a 25-basis-point Fed rate hike in September has risen above 51%, up from 44.4% just one day prior. However, the outlook for silver is not entirely bleak, as strong industrial demand, driven by initiatives like the expansion of solar panel production and grid upgrades, may provide a strong foundation for prices.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
