Uncertainty over a US-Iran agreement weighs on XAG/USD, with traders pricing out Fed rate cuts amid persistent inflation risks.
Silver (XAG/USD) extends losses, trading near $75.90 in European hours as doubts persist over a US-Iran deal. Tehran’s insistence on uranium stockpiles and control over the Strait of Hormuz keeps tensions elevated, pressuring the metal.
The past months have seen silver underperform, dragged down by surging oil prices and sticky US inflation. Markets now assign a 50.8% chance the Federal Reserve holds rates steady this year, with a 48.1% probability of a hike, dimming demand for non-yielding assets.
Technically, XAG/USD remains below its 20-day EMA at $77.79 and struggles to reclaim an upward trendline from March’s $61.01 low, reinforcing a bearish outlook.