XAG/USD rises 0.8% to $59.25 but stalls near $60.00 as surging oil prices fuel inflation fears and hawkish central bank expectations.
Silver prices climbed 0.8% to $59.25 in European trading but failed to breach the $60.00 mark amid a sharp rise in oil prices. WTI crude surged over 2% to $86, its highest level in five weeks, driven by Middle East supply risks.
The rally in oil heightened concerns over persistent inflation, prompting expectations of tighter monetary policy from global central banks. Non-yielding assets like silver typically underperform in such environments. Geopolitical tensions, including the closure of the Bab el-Mandeb Strait, further strained energy markets.
Investors now await the European Central Bank’s policy decision on Thursday, where rates are expected to remain unchanged. Focus will shift to ECB President Christine Lagarde’s comments on inflation and future policy guidance.