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Silver holds above $58.5 as US-Iran talks and Fed expectations support XAG
XAG/USD was around $58.7 per troy ounce, with CME FedWatch putting about a 65% chance of a 25 basis point Fed hike in September.
Silver prices extended gains for a second straight session, trading around $58.70 per troy ounce during Tuesday’s Asian hours, as investors looked to developments in US-Iran talks and the outlook for Federal Reserve policy, according to FXStreet.
The article notes that market participants are monitoring signals on the potential reopening of the Strait of Hormuz, after US President Donald Trump said his latest offer was a “last chance” for negotiations, while Iranian leadership quickly dismissed the proposal and warned against any foreign corridor efforts.
FXStreet also points to interest-rate expectations as another driver for non-yielding assets like silver. After the Fed held rates steady in July, CME FedWatch indicated markets are pricing roughly a 65% chance of a 25 basis point rate hike at the Fed’s September meeting, alongside a moderately hawkish message from Fed’s Williams.
In addition, the FXStreet piece says the FXS Fed Sentiment Index fell by 1.47 points to 146.76, reflecting a modest pullback in perceived hawkishness even as the index remains above the 100 neutral line.
Latest closeSilver $58.28 ▲1.2%