Silver Prices Stabilize Amid Rising Oil Costs and Inflation Fears

Silver prices stabilized around $65.5 an ounce on Wednesday after two consecutive days of decline, pressured by rising oil prices and increased inflation concerns.

The upward trajectory of oil prices continued following a retaliatory strike by US forces on five Iranian crude tankers near Kharg Island, the country's main oil export hub.

Investors are awaiting key US inflation readings this week for further insight into the Federal Reserve's next policy move, with markets currently pricing in a 60% chance of a 25-basis-point rate hike next week.

Despite its traditional role as an inflation hedge, higher interest rates can reduce demand for non-yielding assets like precious metals by increasing the appeal of interest-bearing investments.