Silver Weakens Amid Hormuz Tensions
The price of silver, or XAG/USD, weakened again on Tuesday (July 7th). Silver fell for two consecutive days and traded around US$60.70 per ounce, down 2.21%.
Pressure on silver arose as investors became cautious ahead of the release of the Federal Reserve's meeting minutes. Some market participants chose to hedge their positions after silver had previously recorded gains the previous week.
Rising US Treasury yields also weighed on silver. When yields rise, non-yielding assets like silver and gold typically become less attractive. At the same time, the US dollar remained supported as the market believed the Fed would not abandon its tight monetary policy anytime soon.
The latest US employment data did show a gradual slowdown, but it was not strong enough to significantly alter the Fed's policy direction. New York Fed President John Williams also assessed that labor market risks remained balanced, while inflation remained too high.
From a geopolitical perspective, tensions in the Middle East remain a concern. Attacks on commercial vessels in the Strait of Hormuz have sparked concerns about global energy supplies and driven up oil prices. This situation could reignite inflation risks, negatively impacting precious metals, which are sensitive to interest rate expectations. Market focus now turns to the FOMC minutes, due to be released on Wednesday, to gauge silver's next move. (yds)
Source: Newsmaker.id
