Silver Price Dives Amid Easing Fed Hike Bets and Middle East Tensions

The silver price (XAG/USD) has taken a hit, falling to near $57.50 per troy ounce on Tuesday's Asian hours, despite a previous day's gain of nearly 0.5%. The decline comes as the market eases concerns over rising inflation and further interest rate hikes.

However, some traders believe that the silver price may regain ground as oil prices drop due to de-escalation in the Middle East conflict. US President Donald Trump announced 'good talks' with Iran, but also warned of resumed military strikes if negotiations collapse.

The US suspended its 13-night strike campaign over the weekend, leading to three consecutive days without attacks. The Federal Reserve's upcoming policy decision this week is expected to keep interest rates on hold, with a minority of traders speculating on an immediate rate increase.