Silver Price Forecast: XAG/USD falls to near $75.00 as US-Iran optimism fades
Finance Silver Price Forecast: XAG/USD falls to near $75.00 as US-Iran optimism fades Silver price (XAG/USD) extends its losses for the second successive day, trading around $75.10 per troy ounce during the early European hours on Wednesday. The non-yielding asset faces persistent downward pressure as renewed uncertainty over the status of the Strait of Hormuz sparked fresh fears of an energy-driven inflation shock. Consequently, these supply-side anxieties have bolstered expectations that central banks will maintain a hawkish stance and keep interest rates higher for longer. Optimism for a US-Iran peace deal rapidly eroded following US military “self-defense” airstrikes in southern Iran. In response, Iran‘s Revolutionary Guard claimed to have targeted an American F-35 fighter jet and several drones for allegedly violating Iranian airspace. Iran’s foreign ministry strongly condemned the strikes in the southern Hormozgan province, branding them a “gross violation” of a fragile, seven-week-old ceasefire. The diplomatic fallout follows state media reports of heavy explosions echoing through the region early Tuesday morning. Silver traders are closely analyzing the Federal Reserves (Fed) monetary outlook, a key driver for the non-interest-bearing Silver. Market sentiment was recently hit by the US Consumer Confidence Index, which edged down 0.7 points to 93.1 in May from an upwardly revised