Silver Prices Edge Up Amid Ongoing US-Iran Tensions and Pending Fed Decision

The silver price (XAG/USD) has gained 1.14% to around $57.80 during the Asian trading session on Wednesday, despite oil prices rebounding strongly due to renewed conflicts between the United States and Iran.

The WTI Oil price is up 3.65% to near $81.20, snapping a three-day losing streak, after the US Central Command reported intercepting all ballistic missiles launched by Iranian Islamic Revolutionary Guard Corps forces, followed by precision strikes in Iraq targeting Iran-backed groups planning attacks on US forces and Saudi oil facilities.

The silver price has underperformed in recent months as higher oil prices boosted inflation expectations, forcing global central banks to consider higher or steady interest rates. This scenario is not favorable for non-yielding assets like silver.

Investors are awaiting the Federal Reserve's (Fed) monetary policy announcement at 18:00 GMT, with a 69.5% chance that the Fed will leave interest rates unchanged in the range of 3.50%-3.75%, according to the CME FedWatch tool. This would be the fifth straight policy meeting where the Fed maintains the status quo.