Geopolitical risks and Fed rate hike expectations push silver to $74.70, erasing prior gains amid inflation concerns.
Silver (XAG/USD) fell to $74.70 per troy ounce in Asian trading, reversing modest gains from the previous session. Escalating Middle East hostilities, including missile strikes and retaliatory actions, heightened concerns over energy supply disruptions and inflationary pressures.
The Federal Reserve’s higher-for-longer interest rate outlook gained traction after strong US economic data. The ISM Manufacturing PMI rose to 54 in May, surpassing forecasts, while April JOLTS job openings hit a near two-year high of 7.6118 million, signaling labor market resilience.
Investors await Friday’s Nonfarm Payrolls report for further clues on monetary policy. The combination of geopolitical risks and robust economic data has dampened demand for non-yielding assets like silver.