XAG/USD falls as Fed policy expectations and collapsed US-Iran talks weigh on investor sentiment and non-yielding assets.
Silver (XAG/USD) extended losses for a third straight session, trading near $64.50 per troy ounce in European trading Friday. The decline follows renewed inflation concerns and rising oil supply risks, which have bolstered expectations for prolonged high interest rates.
Prices came under additional pressure after US-Iran negotiations collapsed, with Vice President JD Vance canceling a key summit trip. The Swiss Foreign Ministry confirmed Friday meetings were scrapped, while Iranian media cited ongoing Israeli attacks in Lebanon as the cause. The disruption underscores heightened geopolitical uncertainty.
Federal Reserve policy remains a headwind, with traders pricing in a hawkish outlook. Higher borrowing costs reduce the appeal of non-yielding assets like silver, as noted by Fed Chair Kevin Warsh in recent remarks.