Silver Price Stabilizes Amidst Fed Uncertainty

The price of Silver (XAG/USD) has stabilized around $63.96, down 2.77% on the day, as its bullish momentum fades after a recent rally.

This stability comes amidst uncertainty over the Federal Reserve's monetary policy path, which keeps investor sentiment cautious.

Recent weak US economic data have reduced expectations of an imminent Fed rate hike and helped Silver rebound from near $55 at the start of the month. However, tensions in the Middle East keep inflation risks alive, leaving a possibility of a rate increase later this year on the table.

The prospect of higher interest rates weighs on Silver by increasing its opportunity cost as a non-yielding asset.