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Silver prices (XAG/USD) declined for the third consecutive day, trading near $57.60 per troy ounce during Asian hours. The drop follows a surge in oil prices, which has heightened expectations of a U.S. Federal Reserve rate hike. Traders are closely monitoring the interplay between energy markets and monetary policy, as higher oil prices often lead to inflationary pressures, prompting central banks to tighten monetary conditions. This dynamic has weakened the appeal of non-yielding assets like silver, pushing investors toward the U.S. dollar as a safe haven. The Fed’s potential rate hike could further strengthen the dollar, exerting downward pressure on silver and other commodities priced in USD. Market participants will now focus on upcoming Fed statements and oil price movements to gauge the trajectory of silver. Additionally, geopolitical tensions in key oil-producing regions and economic data releases could influence the asset’s short-term direction.
