Geopolitical tensions and Fed rate hike expectations push silver prices lower despite mixed Middle East developments.
Silver (XAG/USD) fell to near $72.50 per troy ounce in Asian trading Wednesday, reversing modest gains from the prior session. The decline comes as Middle East uncertainty fuels inflation concerns and reinforces expectations for higher US interest rates by year-end.
Prices retreated despite US President Donald Trump’s remarks suggesting a potential Iran peace deal, as Iranian officials maintained a hardline stance on regional control. Meanwhile, stronger US labor data has bolstered Fed rate hike odds, further pressuring the non-yielding metal.
Traders are now focused on Friday’s US Nonfarm Payrolls report, with forecasts calling for 85,000 jobs added in May and unemployment steady at 4.3%. A stronger-than-expected print could cement further Fed tightening bets.