XAG/USD retreats near $57.50 amid Fed rate decision focus, offsetting optimism from Middle East de-escalation and lower oil prices.
Silver (XAG/USD) slipped to around $57.50 per troy ounce in Asian trading Tuesday, reversing nearly 0.5% gains from the prior session. The decline comes despite easing inflation concerns as oil prices fall on hopes of reduced Middle East tensions.
Traders are now eyeing the Federal Reserve’s upcoming policy meeting, where officials are expected to hold rates steady. While some speculate on a potential September hike, the consensus leans toward no immediate increase.
Market sentiment remains cautious as geopolitical risks persist, though temporary de-escalation may support non-yielding assets like silver in the near term.