Silver Price Forecast: XAG/USD remains steady near $94.00 as oil prices ease

Silver price (XAG/USD) remains near $94.00 as oil prices ease, according to wire material. Following two days of losses, silver trading around $63.90 per troy ounce during Asian hours on Friday. Lower energy costs, potentially due to a phased agreement between the United States and Iran, have provided some support to non-yielding silver amid inflation concerns.

However, silver faces headwinds from a strengthening US Dollar and rising Treasury yields. Investors are anticipating further monetary tightening by the Federal Reserve to tackle broader price pressures. The CME FedWatch Tool indicates that market expectations for an October interest rate hike have increased to 67.5%, up from 55.4% just a week ago.

Higher yields have reduced the appeal of non-yielding assets like silver, limiting its upside potential. Silver is often used as a safe-haven asset and store of value, but its price is also influenced by economic factors such as the US Dollar's strength, investment demand, mining supply, and recycling rates. Silver prices typically mirror those of gold, as both are considered safe-haven assets.