Silver Prices Hold Steady Amid Ongoing Middle East Tensions

Silver prices are stable around $65 in the American session on Wednesday, after briefly trading above $66, its highest in nearly two months. Market players have found no relevant drivers so far this week, with headlines pointing to continued tensions in the Middle East and a conflict with no resolution in sight.

The stalemate between the United States (US) and Iran continues to create uncertainty in financial markets, which closely monitor oil prices. Both Brent and West Texas Intermediate (WTI) crude prices have been on the rise over the last few days, reviving inflation-related concerns and speculation about tighter monetary policy by central banks.

The United States will publish the July Consumer Price Index (CPI) data on Wednesday, which could provide a clearer picture of the situation. The core annual CPI is forecast at 2.5%, slightly below the 2.6% posted in June, and would not affect the odds for future Federal Reserve (Fed) monetary policy decisions.

However, if the outcome surprises to the upside, market players are likely to increase bets for a September hike, which in turn should strengthen the Greenback.