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Silver slips near $65.50 as US-Iran peace prospects dim

CME FedWatch shows traders cut the odds of a Fed hike to 35%, down from 47% a month earlier, weighing on silver prices.

Reported · Written up by our desk · Major Pairs

Silver prices edged lower after two days of gains, with XAG/USD trading around $65.60 per troy ounce during Asian hours Tuesday.

FXStreet said the drop reflects traders growing wary of inflation risks as prospects for a new US-Iran diplomatic agreement dim after remarks from both sides, including the US stance on not extending an interim peace deal.

The outlet noted that expectations for fewer or no additional interest rate hikes could limit downside, pointing to reduced market anticipation for monetary tightening after an unexpected decline in July US Nonfarm Payrolls and modest consumer price inflation data.

FXStreet also cited CME FedWatch data showing the probability of a Fed rate hike at the upcoming meeting fell to 35% from 47% a month earlier, with investors looking to minutes from the Fed’s July meeting for further clues.

Latest closeSilver $64.83 ▼0.1%

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