Silver prices remain range-bound as traders reduce Federal Reserve rate hike expectations for September and December.
Silver (XAG/USD) traded sideways at $65.30 in European hours, confined to a $63.50-$66.80 range for a week. Weak US economic data has diminished expectations for a September Fed rate hike, with odds now at 30%, down from over 70% in early August.
Market participants anticipate no further tightening this year, though risks persist due to geopolitical tensions and energy price volatility. BNY Markets noted inflation data and softer retail spending have eased hike pressures, but upside risks remain if energy costs surge.
The non-renewal of the US-Iran deal has added to oil price concerns, potentially impacting inflation expectations and Fed policy outlook.