Silver Price Tumbles Amid Ongoing Energy Supply Disruptions
The silver price (XAG/USD) continued its decline on Wednesday, dipping to near $63.00 during the Asian trading session. This drop of 0.5% comes amid concerns over prolonged inflation due to ongoing energy supply disruptions.
With WTI Oil prices reaching a two-week high at $85.11, higher oil prices are contributing to fears of interest rate hikes from global central banks. As a result, non-yielding assets like silver are losing appeal.
US President Donald Trump's confirmation that there are no talks or conversations with Iran regarding energy supply issues is adding to the uncertainty. The Federal Open Market Committee (FOMC) minutes from the July policy meeting will be released later today, but investors do not expect any significant guidance on interest rates from Chairman Kevin Warsh.