Silver Price Forecast: XAG/USD slips below $57.00 as surging oil fuels inflation fears
Silver price (XAG/USD) loses ground for the second successive day, trading around $56.80 per troy ounce during Asian hours on Thursday. Non-yielding Silver faces challenges as surging oil prices fuel inflation fears and boost expectations of a Federal Reserve (Fed) rate hike.
Silver prices dipped below $57.00 for the second consecutive day, trading near $56.80 per troy ounce on Thursday's Asian session. The decline was driven by surging oil prices that sparked inflation fears and heightened expectations of a Federal Reserve rate hike. Crude oil prices surged following a drone attack on Saudi Aramco's Shaybah oil field, resulting in two casualties and escalating tensions in the Middle East.
Additionally, Ukraine's recent drone strikes on Russian oil infrastructure added to regional geopolitical tensions. Analysts at Rabobank emphasized that the evolving geopolitical landscape, particularly the US's stance on the conflict, underscored the importance of energy security in today's Cold War. This uncertainty about the Federal Reserve's monetary policy and geopolitical risks was keeping investors cautious about Silver's price trajectory.
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