XAG/USD declines amid geopolitical tensions and reduced Fed rate hike expectations, trading near $65.50 per ounce.
Silver prices (XAG/USD) fell to near $65.50 per troy ounce in Asian trading on Tuesday, reversing two days of gains. The decline comes as prospects for a US-Iran diplomatic agreement dim, with both sides issuing statements that signal stalled negotiations.
Traders remain cautious amid inflation concerns, though expectations for a Federal Reserve rate hike next month have dropped to 35% from 47% a month earlier. The shift follows weaker-than-expected US jobs data and modest inflation figures, reducing pressure on the Fed to tighten policy further.
Investors are now focused on the upcoming release of the Fed’s July meeting minutes, which could provide further clarity on monetary policy direction. Silver’s recent volatility reflects broader uncertainty in both geopolitical and macroeconomic outlooks.