Silver Prices Stable Amid Oil Price Rebound and Rate Hike Uncertainty

Silver prices held steady at around $57 an ounce on Wednesday, despite a previous decline. The stability came as oil prices rebounded following renewed hostilities in the Middle East, which has increased geopolitical tensions and kept investors focused on inflationary pressures and interest rate outlook.

The US military intercepted what it described as a surprise Iranian attack targeting US troops across the Middle East. Investors are also awaiting the Federal Reserve's policy decision, where it is expected to leave interest rates unchanged.

However, markets still price in about a one-third chance of a rate hike, reflecting an unusually high level of uncertainty this close to a policy announcement. President Donald Trump has repeatedly called for lower interest rates.

Traders also assign roughly an 80% probability to a rate increase in September, reinforcing expectations that borrowing costs could remain elevated.