Silver Gains Capped by Hawkish Fed Bets Amid Ceasefire Boost

The Silver price has started the week on a firm footing due to lower oil prices following the announcement of a ceasefire between the US and Iran. The white metal is up 1% to near $58.20, but its gains are limited by hawkish Federal Reserve bets.

Analysts at Deutsche Bank expect two further 25bps interest rate hikes this year, while the CME FedWatch tool indicates a 64.5% chance of the Fed hiking rates next month.

The Silver price has underperformed in recent months due to rising oil prices fueling global inflation projections. This scenario typically forces central banks to tighten monetary conditions, which is bearish for non-yielding assets like Silver.