Silver (XAG/USD) climbs more than 2% on Thursday as a ceasefire agreement between Israel and Lebanon weighs on the US Dollar (USD).
At the time of writing, XAG/USD is trading around $74.80, but remains stuck within a familiar range between $72-$78 that has held since mid-May
What’s keeping Silver stuck in a range? The metal is struggling to break out as the market awaits a clearer signal from the US-Iran talks. While the Israel-Lebanon ceasefire has improved sentiment and removed one obstacle in the diplomatic process, key issues between Washington and Tehran remain unresolved.
At the same time, the recent rise in Crude Oil prices has added to inflation concerns. That has fueled expectations that major central banks, including the Federal Reserve (Fed), may need to keep interest rates higher for longer. Higher borrowing costs tend to weigh on precious metals because they reduce the appeal of non-yielding assets.