Silver Prices Correct Lower Amid Technical Pullback and Geopolitical Tensions

Silver prices retreated to around $65.40 during Asian trading hours on Tuesday due to a technical correction after two consecutive sessions of gains.

The current silver market is influenced by opposing forces: weak U.S. employment and inflation data have reduced market bets on further Federal Reserve rate hikes, providing support for precious metals; meanwhile, ongoing tensions between the United States and Iran pose risks to crude oil supplies, which could reignite energy price increases and constrain silver's upside potential through inflation expectations.

The decline in U.S. macroeconomic data has significantly weakened market expectations for further tightening of monetary policy in the short term. The July non-farm payroll data unexpectedly weakened, while consumer inflation figures remained relatively moderate, prompting investors to reassess the outlook for U.S. economic growth and monetary policy.