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Silver prices (XAG/USD) retreated after two consecutive days of gains, trading near $76.10 per troy ounce during Asian hours on Friday. The decline reflects growing expectations of a hawkish Federal Reserve (Fed) policy stance, which reduces demand for non-yielding assets like silver. Geopolitical tensions between the US and Iran also weigh on the market, though the impact remains secondary to central bank-driven factors. The white metal’s struggle to break above key resistance levels highlights its sensitivity to interest rate expectations and safe-haven demand dynamics.
For traders, the Fed’s potential rate hike trajectory and US-Iran developments are critical. A hawkish Fed would likely weaken silver’s appeal as an inflation hedge, while heightened geopolitical risks could temporarily boost demand. The current price action near $76.00 serves as a psychological threshold for both bulls and bears. Broader market sentiment, including gold’s performance as a benchmark for precious metals, will also influence silver’s direction.
Looking ahead, investors should monitor the Fed’s upcoming policy statements and economic data releases for clues on rate hike timing. Geopolitical updates from the Middle East could add volatility. Technical analysis suggests a breakdown below $75.50 may open the door for further declines, while a sustained move above $77.50 could signal a reversal. Silver’s performance will remain closely tied to macroeconomic fundamentals and central bank policy shifts.
