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Silver eases as investors weigh Fed decision and softer safe-haven demand
Silver is quoted near $57.55, down 1.45% on the day, as a firmer US dollar curbs demand ahead of this week’s Federal Reserve meeting.
Silver prices slipped on Tuesday, trading around $57.55, down 1.45% on the day, as investors stayed cautious ahead of the Federal Reserve’s monetary policy decision, FXStreet reported. A rebound in the US dollar also weighed on demand for the metal, despite lingering geopolitical uncertainty.
Market participants continued to assess developments in the Middle East. US President Donald Trump said the United States is holding “good talks” with Iran to resolve the regional conflict, and the prospect of de-escalation has been weighing on oil prices, reducing expectations of near-term inflation pressures and pushing back assumptions of an immediate rate hike.
Even so, Trump warned that US military strikes could resume if negotiations fail, while security incidents reported in Saudi Arabia, Jordan and Iraq and ongoing shipping disruptions through the Strait of Hormuz kept tension elevated. Investors also turned to the Fed meeting, where rates are expected to remain unchanged, though a minority of participants still see a chance of an immediate hike, with guidance viewed for clues on the path ahead.
FXStreet noted that silver is widely traded as a store of value and can be influenced by interest rates and the US dollar because the metal is priced in dollars. As a yieldless asset, silver typically benefits when rates are lower and can move with safe-haven flows, though it often reacts less than gold during risk-off periods.
Latest closeGold $4,078.90 ▲0.3%|Silver $58.70 ▲0.1%