XAG/USD dips 0.08% to $59.90 as rising US interest rate expectations and a stronger USD curb precious metal gains.
Silver prices retreated slightly on Friday, trading near $59.90 as the metal failed to sustain a rebound. The 0.08% decline reflects growing expectations of a Federal Reserve interest rate hike by year-end, driven by persistent inflation concerns amid Middle East tensions.
Markets are pricing in a high probability of monetary tightening, according to the CME FedWatch tool. A stronger US Dollar, supported by these expectations, has reduced the appeal of non-yielding assets like silver. Rising oil prices, fueled by geopolitical risks, have further reinforced inflation fears.
Investors are closely watching US Consumer Price Index data due Tuesday, which could influence the Fed’s rate path and provide the next catalyst for silver prices. Diplomatic efforts between the US and Iran continue, offering potential relief for energy markets if tensions ease.