Markets Cautionary, Silver Prices Weak
Silver prices (XAG/USD) slipped to around $38.10 per troy ounce on Wednesday, extending two consecutive sessions of losses. Despite being a traditional safe-haven asset, silver came under pressure as investors turned cautious ahead of the U.S. Federal Reserve’s interest rate decision later today.
Traders broadly expect the Fed to keep rates steady at 4.25%–4.50% in July, with CME FedWatch showing a 97% chance of no change. Higher interest rates typically weigh on non-yielding assets like silver, as investors seek higher returns elsewhere. The FOMC press conference will be closely watched for signs of potential rate cuts starting in September.
Markets are also looking ahead to key U.S. economic data, including Q2 PCE inflation and July’s Nonfarm Payrolls, for more clarity on the economy’s strength. Meanwhile, geopolitical tensions could reignite demand for safe-haven assets. President Trump warned he may impose 100% secondary tariffs on Russia if there is no progress toward ending the war in Ukraine within 10 to 12 days—sooner than his previous 50-day deadline.
Elsewhere, optimism over U.S.–China trade talks faded after negotiations in Stockholm ended Tuesday without an agreement to extend the tariff truce. Treasury Secretary Scott Bessent said talks will continue, but Trump will have the final say. This uncertainty has put pressure on both risk assets and traditional safe havens like silver.
Source: Newsmaker.id
