XAG/USD falls 0.5% as rising oil prices fuel inflation concerns and reduce demand for non-yielding assets.
Silver prices declined 0.5% to near $63.00 in Asian trading on Wednesday, extending losses from the previous session. The drop follows a surge in oil prices to a two-week high of $85.11, stoking fears of prolonged inflation and potential central bank rate hikes.
The energy supply disruption, exacerbated by geopolitical tensions, shows no immediate resolution. WTI crude’s rally has de-anchored inflation expectations, pressuring non-yielding assets like silver. Markets now await the FOMC minutes for clues on the Fed’s rate path, though no major shifts are expected.
Technically, XAG/USD hovers near its 20-day EMA at $62.41, with the RSI at 52.59 signaling muted bullish momentum.