Investors await the Federal Reserve’s policy announcement, with silver prices falling as uncertainty over US inflation persists.
Silver (XAG/USD) fell to $56.90, down 0.43% on Wednesday, as markets adopted a cautious stance before the Federal Reserve’s monetary policy decision. The Fed is expected to hold its benchmark rate steady at 3.5%-3.75% for a fifth consecutive meeting, though futures markets still price a one-in-three chance of a 25-basis-point hike.
Prior sessions saw silver stabilize near $57, but persistent inflation concerns and geopolitical tensions have weighed on non-yielding assets. The Fed’s press conference will be closely watched for signals on future policy moves, with any hawkish tilt likely to strengthen the USD and pressure silver further.
Geopolitical risks, including US strikes on Iran, have supported oil prices, reinforcing fears of sustained inflation. While such tensions typically boost safe-haven demand, markets are currently focused on their inflationary impact rather than silver’s traditional role as a hedge.