Long Holiday Over, Silver Tested Again
Silver weakened during Tuesday's Asian session, with XAG/USD dropping to the $75.6–$76.0 area. Real-time data showed silver hovering around $75.59, down -1.34% from its previous close, indicating restrained buying interest despite the metal's initial stabilization efforts.
Pressure arose as dovish expectations from the Fed remained "locked in"—soft US inflation data hasn't automatically changed the market's view that an interest rate cut is imminent. Reuters noted that January's CPI rose 0.2% and annual inflation fell to 2.4%, while annual core CPI stood at 2.5%, but service pressures still make the Fed cautious.
Volatility also eased due to thin trading due to the long holiday (Presidents' Day in the US and Chinese New Year in parts of Asia). However, North American markets have reopened, allowing for more room for movement, especially ahead of the release of the FOMC minutes on Wednesday (February 18th)—notes that will be read for clues about the next interest rate path.
Beyond data, investors are also monitoring geopolitical risks: US-Iran nuclear talks in Geneva are back underway, with President Donald Trump saying he is involved "indirectly" and assessing Iran's desire for a deal—but still warning of consequences if it fails. The combination of Geneva headlines and the Fed minutes could potentially determine whether pressure on silver continues or triggers a rebound. (Asd)
Source: Newsmaker.id
