Silver Price Tumbles Amid US-Iran Peace Deal Uncertainty
Silver prices have declined to around $65.50 per troy ounce after two days of gains, amid uncertainty over a potential US-Iran peace deal.
US President Donald Trump's comments that he is not interested in extending the interim peace deal and his proposal to declare the Strait of Hormuz as US territory under total American control have dimmed prospects for a new diplomatic agreement with Iran.
Iranian Foreign Ministry spokesman Esmail Baghaei asserted that an agreement remains elusive due to security complexities and the 'obstructionist behavior of destructive elements,' insisting that the US must first lift its blockade.
Despite this, silver prices could rebound amid fading expectations for further interest rate hikes by the Federal Reserve (Fed). The CME FedWatch Tool indicates that expectations for a Fed rate hike at the upcoming policy meeting have dropped to 35%, down from 47% a month earlier.