XAG/USD rebounds from an 11-week low amid Middle East conflict and mixed US inflation data, capping gains.
Silver prices (XAG/USD) climbed to $64.00 per troy ounce in Asian trading, recovering from an 11-week low of $61.50 hit earlier. The metal’s dual role as a safe-haven asset and industrial commodity drove the rebound, though upside remains limited by escalating geopolitical risks.
The US launched a second day of airstrikes against Iran after retaliatory attacks on American military sites in Bahrain, Jordan, and Kuwait. President Donald Trump warned of further military action if no peace deal is reached, while Iranian officials vowed no retreat. May US inflation rose at its fastest pace in over three years, matching expectations, with energy costs driving the surge.
Traders slightly reduced bets on Federal Reserve rate hikes, though a December quarter-point increase remains fully priced in. Focus now shifts to May’s Producer Price Index (PPI) data for further inflation signals.