Silver Price Forecast: XAG/USD slips below $50.50 as US attacks on Iran’s Qeshm Island

Silver prices slipped below $50.50 per troy ounce as US attacks on Iran's Qeshm Island triggered oil supply fears. The precious metal had been trading near an 11-month low of $48.87 per ounce, a level reached on October 30. The US military actions, part of a covert sequence of limited strikes, followed remarks by US President Donald Trump who downplayed expectations of a full-scale return to war with Iran after the midterm elections.

Meanwhile, Iranian state media reported that Iran's Islamic Revolutionary Guard Corps had intercepted and downed two US MQM-170 drones and destroyed a 55th US MQ-9 drone. Precious metals, including Silver, faced selling pressure due to ongoing Middle East tensions driving up energy costs and inflationary risks. Central banks maintained a hawkish stance with the CME FedWatch Tool pricing in a 73% chance of a US Federal Reserve rate hike in December.

The US midterm elections saw growing political scrutiny over elevated energy prices and inflation concerns. Silver is a precious metal used as a store of value and hedge during inflation, with its price influenced by factors such as geopolitical stability, interest rates, and global economic dynamics.