Silver Price Tumbles Amid Oil Price Surge and Iran Disruption Fears
The price of Silver (XAG/USD) has dropped to near $63 due to rising oil prices, which have de-anchored global inflation expectations. This scenario is prompting concerns that central banks will raise interest rates, reducing the appeal of non-yielding assets like Silver.
US President Donald Trump confirmed that there are no talks or conversations with Iran about resolving energy supply disruptions, further exacerbating concerns.
The Federal Open Market Committee (FOMC) minutes from the July policy meeting will be published today at 18:00 GMT. However, investors should not expect any major cues on the Federal Reserve's interest rate outlook, as Chairman Kevin Warsh has maintained that there is 'no forward guidance' on policy rates.
The CME FedWatch tool indicates that the Fed is likely to keep interest rates unchanged in September.