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Silver slips near $59 as US-Iran tensions lift oil and rate worries
FXStreet says silver is pressured by escalating missile strikes, with markets awaiting US CPI data and expectations for another Fed rate increase before year end.
Silver prices for XAG/USD fell to around $59.00 per troy ounce during Monday’s Asian trading hours, extending a two-day run higher before the latest decline.
FXStreet links the drop to escalating US-Iran missile strikes that are pushing oil higher, raising fears of renewed inflation and the prospect of higher interest rates.
The outlet notes that CENTCOM launched additional strikes on Sunday aimed at weakening Iran’s capability to target civilian vessels, with US forces hitting more than 300 Iranian targets over a three-night span.
Attention is now on US CPI data due later Tuesday for clues on the Fed’s policy outlook, where headline CPI is expected to decline 0.1% month over month in June and core CPI is projected to rise 0.3% month over month. Markets are positioning for one more rate increase before the year ends, and Fed Chair Kevin Warsh is scheduled to appear before Congress this Tuesday, FXStreet added.
Latest closeSilver $60.30 ▼0.1%