XAG/USD gains 1% as the US Dollar Index drops 0.25% to 100.80, offsetting renewed inflation risks from Middle East tensions.
Silver prices climbed over 1% to near $59.00 in European trading on Thursday, driven by a 0.25% decline in the US Dollar Index to 100.80. The greenback’s weakness persists despite heightened inflation fears tied to rising oil prices and geopolitical tensions in the Middle East.
The US Dollar remains under pressure even as attacks between the US and Iran, along with strikes on Iranian infrastructure, stoke global inflation risks. Earlier, FOMC minutes from June’s policy meeting signaled policymakers’ preference for further monetary tightening to combat inflation.
Technically, a softer USD improves silver’s appeal as a risk-reward asset for investors, though broader macroeconomic uncertainties linger.