"The approaching US-imposed deadline on Iran is heightening uncertainty, discouraging aggressive positioning across markets. This backdrop has kept oil prices elevated, reinforcing inflation concerns and supporting a more cautious monetary policy outlook."
"Policymakers continue to emphasise inflation risks over labour market concerns, reinforcing expectations that rates could remain unchanged for longer. Forecasts now largely discard the possibility of interest rate cuts this year, which limits the upside for non-yielding assets such as silver."
"Despite current headwinds, the broader structural backdrop remains constructive, with the market expected to post a sixth consecutive annual supply deficit. Looking ahead, attention turns to the release of the Federal Reserve minutes, along with key inflation indicators."
Silver prices are experiencing sideways trading as investors exercise caution ahead of significant geopolitical events, particularly the US deadline on Iran. This uncertainty is keeping oil prices high, which in turn raises inflation concerns and influences a cautious monetary policy outlook. Federal Reserve officials are prioritizing inflation risks, leading to expectations that interest rates may remain stable longer, limiting potential gains for non-yielding assets like silver. Despite challenges, the market is expected to face a sixth consecutive annual supply deficit, with upcoming Federal Reserve minutes and inflation data being pivotal for future price direction.
Read at London Business News | Londonlovesbusiness.com
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