XAG/USD falls 3.5% to near $55.75 as US Dollar strength and Fed rate hike bets pressure the metal amid Middle East tensions.
Silver (XAG/USD) declined 3.5% to $55.75 on Thursday, extending losses as the US Dollar rebounded and Treasury yields stabilized. The move follows softer US inflation data earlier in the week, though rising oil prices due to Middle East tensions keep Fed rate hike expectations alive for later this year.
The metal remains over 50% below its January record high of $121 and trades below key moving averages, signaling a bearish trend. Technical indicators, including an RSI near 34, suggest further downside risk as prices hover near the $55 support level.
Market focus remains on Fed policy and geopolitical developments, with silver vulnerable to further declines if rate hike bets persist.