Silver Price Analysis: XAG/USD rebound capped by higher rate risks
Finance Silver Price Analysis: XAG/USD rebound capped by higher rate risks Silver (XAG/USD) moves higher on Thursday, trading around $73.40 at the time of writing, up 2.81% on the day, after undergoing a marked pullback in recent weeks. This technical rebound comes as the white metal attempts to stabilize following the rejection near the $80 threshold in mid-April. The move remains fragile, however, amid an unfavorable macroeconomic environment. Persistently high Oil prices, driven by geopolitical tensions in the Middle East, are sustaining inflation concerns. This dynamic is reinforcing expectations that central banks will maintain restrictive monetary policies for longer, reducing the appeal of non-yielding assets such as Silver. The Federal Reserve (Fed) confirmed this cautious stance by keeping interest rates unchanged on Wednesday, while emphasizing uncertainty surrounding the inflation outlook, particularly due to elevated energy costs. This position is strengthening expectations that financial conditions will remain tight for an extended period, or even tighten further if inflationary pressures persist. In this context, analysts at OCBC note that Silvers bullish momentum has clearly weakened after the rejection below $80. According to the analysts, the recent correction reflects both profit-taking and a less supportive macro backdrop, marked by rising rate expectations and a firmer US Dollar. In addition,