Silver Price Dips Amid Oil Rally and Fed Hike Fears

Silver prices have taken a hit due to rising oil prices and renewed inflation fears. The XAG/USD slipped to near $66.00 per troy ounce, trading around this level during Asian hours on Tuesday.

The price of silver has been affected by the sharp rally in crude oil, which has driven Treasury yields higher. Markets remain cautious due to ongoing uncertainty surrounding a potential deal between the US and Iran, and concerns are growing that the Federal Reserve may raise rates sooner rather than later.

Despite these headwinds, strong industrial demand could soon provide a solid floor for prices. Silver continues to benefit from major global initiatives, particularly the expanding production of solar panels and upgrades to electrical grids.