Silver Price Forecast: XAG/USD falls to near $66.00 amid Middle East tracking
Silver price (XAG/USD) remains subdued after two days of gains, trading around $65.80 per troy ounce during the early European hours on Monday. Non-yielding Silver eased as investors continued to track developments in the Middle East and assess their potential impact on inflation and interest rates.
Silver prices (XAG/USD) have settled near $66.00 as the market continues to monitor developments in the Middle East and assess their implications on inflation and interest rates. Investors are closely watching potential diplomatic efforts to end the conflict and stabilize energy flows from the region. US President Donald Trump's possible meetings with Iranian President Masoud Pezeshkian and other Persian Gulf leaders, as well as a summit with Chinese President Xi Jinping, may provide some optimism for oil prices.
However, ongoing geopolitical tensions could restrain the downside of oil prices. The US Federal Reserve recently raised rates by 25 basis points, signaling further potential increases in the future. With high inflation remaining a concern, Fed Chair Kevin Warsh emphasized the need for persistent policy vigilance. Silver, a precious metal used as a store of value and hedge during inflation, tends to rise when interest rates are low and the US Dollar weakens.
Factors such as investment demand, mining supply, and global economic dynamics can also influence Silver prices.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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