XAG/USD declines for a second day amid geopolitical risks and Fed rate concerns following US strikes in the Strait of Hormuz.
Silver (XAG/USD) fell to near $57.00 per troy ounce in Asian trading Thursday, extending losses for a second straight session. The decline comes as rising US-Iran tensions drive oil prices higher, stoking inflation worries and fears of prolonged Federal Reserve rate hikes.
US inflation data released Tuesday showed the Consumer Price Index (CPI) easing to 3.5% in June from May’s 4.2%, below the 3.8% consensus. While softer inflation initially eased rate hike concerns, escalating Middle East conflict has reignited market uncertainty.
The US Central Command (CENTCOM) conducted strikes targeting an oil tanker in the Strait of Hormuz, a critical global trade route. President Donald Trump declined to set a timeline for potential further action against Iran, keeping markets on edge.