Silver Held in a Tight Range as Market Awaits US CPI and Pakistan Negotiation Outcome
Silver (XAG/USD) moved within a narrow range during the European session on Friday (April 10), with the final price hovering around US$75.76 per troy ounce as market participants held positions ahead of the March US CPI release and awaited the outcome of the US-Iran talks on a permanent ceasefire scheduled for Pakistan later this week.
Consensus expects headline inflation to rise to 3.3% (YoY) from 2.4%, while core inflation is projected to rise to 2.7% from 2.5%. On the one hand, a higher reading could potentially strengthen expectations of tighter Fed policy, which is generally a burden on non-yielding assets like silver. On the other hand, some market participants believe the inflationary impact could be perceived as a temporary factor if the negotiations result in a permanent commitment not to disrupt flows through the Strait of Hormuz.
However, the framework Iran has put forward—including a 10-point proposal—still leaves open the issue of Tehran's authority in setting the trajectory, making the outcome of the talks key to whether energy risk premiums actually decline or rebound. If negotiations fail and energy inflation re-fuels hawkish Fed expectations, silver risks further pressure; conversely, credible diplomatic progress could lower yields and open up room for a recovery in the precious metal.
Source: Newsmaker.id
