Trump's Criticism and Iran Tensions Shake the Market, Silver Chooses to Drop
Silver prices (XAG/USD) moved lower in trading on Friday (6/28), falling to near $36.50 per troy ounce during the Asian session. This decline occurred after silver recorded two consecutive days of strengthening previously. Although there are new concerns in the global market that usually support precious metals, risk sentiment looks shaky due to uncertainty about the direction of the Federal Reserve's (The Fed) future policy.
The main cause of pressure on silver came from US President Donald Trump's statement, who again criticized Fed Chair Jerome Powell. At the NATO meeting in The Hague, Trump called Powell a "terrible" figure and indicated that he was ready to appoint Powell's replacement as early as September or October. This raises uncertainty about the direction of US monetary policy in the future, causing investors to refrain from safe haven assets such as silver.
On the other hand, geopolitical tensions have increased again after Iranian Foreign Minister Abbas Araghchi's statement. He emphasized that Iran has no plans to continue nuclear negotiations with the United States. The statement sparked new concerns in the market, but was not strong enough to drive silver prices up significantly.
For now, market players tend to wait for further clarity regarding the direction of Fed policy and geopolitical developments in the Middle East. Silver remains in a medium-term uptrend, but high volatility is expected to still overshadow the movement of precious metal prices in the next few sessions.
Source: (ayu-newsmaker)
