Silver Falls Ahead of the Fed
Silver prices weakened on Tuesday (July 28th), hovering around US$57.36 per troy ounce. XAG/USD fell around 1.8% as investors reduced positions ahead of the Federal Reserve's interest rate decision.
Pressure on silver came from the US dollar, which remained near a five-week high. The US Dollar Index hovered around 101.49, making the precious metal more expensive for buyers using other currencies.
Safe-haven sentiment also waned after the United States and Iran halted attacks and opened the door to diplomacy. Hopes of a easing of the conflict encouraged investors to invest in riskier assets, reducing demand for precious metals.
Oil prices fell sharply again on hopes of a US-Iran deal. Brent fell to around US$83.75 per barrel and WTI fell to US$78.55, helping to ease concerns about energy inflation.
US consumer confidence data also weakened to 90.8 in July from 92.2 in June. This situation suggests that households are becoming more cautious, but it's not yet strong enough to eliminate uncertainty ahead of the Fed's decision.
The market largely expects the Fed to maintain interest rates, although the likelihood of a hike is not entirely lost. As long as the dollar remains strong and geopolitical risks subside, silver could potentially remain under pressure, while Fed Chairman Kevin Warsh's statement will determine the next direction. (arl)
Source: Newsmaker.id
