XAG/USD falls toward $56.70 amid rising energy costs and geopolitical tensions between the US and Iran.
Silver prices declined 1.85% to near $56.70 on Thursday as energy-driven inflation fears heightened expectations for prolonged higher interest rates. The drop reflects broader market concerns over persistent price pressures.
Prior to the sell-off, silver had shown resilience amid mixed macroeconomic signals. However, renewed geopolitical tensions between the US and Iran pushed energy prices higher, reviving inflation worries.
The move underscores investor sensitivity to shifts in monetary policy outlook, particularly as central banks weigh inflation risks against economic growth.