XAG/USD dips 0.25% ahead of the Fed’s rate decision and a US-Iran ceasefire easing energy supply risks.
Silver (XAG/USD) trades at $69.85, down 0.25% on Wednesday, as investors await the Federal Reserve’s policy update. The Fed is expected to hold rates steady at 3.5%-3.75%, but markets will focus on revised economic projections and the dot plot for clues on future hikes.
A preliminary US-Iran ceasefire agreement has reduced fears of energy supply disruptions, easing inflation concerns. The deal includes a 60-day truce and reopening of the Strait of Hormuz, though key details remain unresolved. Precious metals have found support from softer inflation expectations.
Traders will scrutinize Fed Chair comments for hints on rate trajectories, with silver’s near-term outlook tied to the central bank’s guidance and geopolitical developments.