XAG/USD falls to $57.40 as investors shift from safe havens amid easing Middle East tensions and Fed policy uncertainty.
Silver prices dropped 1.71% to $57.40 as the US Dollar regained strength and risk appetite improved. Investors reduced exposure to safe-haven assets ahead of the Federal Reserve’s upcoming monetary policy decision, while optimism over US-Iran negotiations weighed on demand.
Prior to the decline, silver had benefited from geopolitical tensions and inflation concerns. However, comments from US President Donald Trump suggesting progress in talks with Iran eased fears of escalation, pressuring both silver and oil prices. Consumer confidence data also softened, with the Conference Board index slipping to 90.8 in July.
Private-sector job growth slowed sharply, with ADP data showing just 15K jobs created weekly in mid-July. Despite the improved sentiment, regional security incidents in the Middle East underscore lingering risks.