XAG/USD rises near $69.40 as Iran-Oman talks reduce energy disruption risks ahead of US PCE inflation data.
Silver (XAG/USD) climbed nearly 1% to $69.40 in Asian trading on Wednesday, supported by easing concerns over energy supply disruptions. Reports of Iran and Oman resuming talks to establish a temporary maritime corridor in the Strait of Hormuz reduced fears of prolonged oil shortages, which could have fueled inflation expectations and central bank rate hikes.
The metal’s gains reflect optimism that lower energy prices may curb inflationary pressures, benefiting non-yielding assets. Investors are now focused on the US core PCE inflation data for July, expected to hold steady at 3.3% YoY, with monthly figures rising to 0.2% from 0.1% in June.
Markets also await the Jackson Hole Symposium, starting Thursday, where Federal Reserve communication on inflation and policy will be closely watched.